DMART - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📉 DMART presents a cautious swing trade opportunity with strong fundamentals but weak technical indicators. Entry near ₹4,100 is ideal. If already held, consider exiting around ₹4,500–₹4,600.

📈 Positive

• 🏪 Large Market Cap of ₹2.72 lakh Cr. reflects strong brand and scale.
• 📊 ROCE of 18.4% and ROE of 14.0% indicate efficient capital use.
• 📈 EPS of ₹45.8 supports consistent earnings performance.
• 📉 Low Debt-to-Equity ratio of 0.06 shows financial prudence.
• 📈 FII holding increased by 0.48%, signaling foreign investor confidence.

⚠️ Limitation

• 📉 RSI at 35.9 and MACD at -79.3 indicate bearish momentum.
• 📉 Trading below DMA 50 and DMA 200 suggests short-term weakness.
• 💸 High P/E of 91.3 vs industry average of 51.5 implies overvaluation.
• 📉 Quarterly PAT declined from ₹830 Cr. to ₹747 Cr.
• 💰 Dividend yield of 0.00% offers no passive income.

📉 Company Negative News

• 📉 Margins remain under pressure, with contraction slowing but still present.
• 📉 Mixed analyst sentiment—some firms cut target price despite expansion plans.

📈 Company Positive News

• 📈 DMART added 15% more stores YoY, boosting long-term growth prospects.
• 📈 Shares rallied 6% on expansion plans and confidence in value retail model.
• 📈 Analysts see up to 18% upside driven by store additions and margin recovery.

🏬 Industry

• 🛒 Retail sector remains competitive but resilient, with value retail seen as a multidecadal opportunity.
• 📊 Industry P/E of 51.5 suggests moderate valuation across peers.

✅ Conclusion

• 📉 DMART is a moderate swing trade candidate with strong fundamentals but weak technical indicators.
• 📉 Optimal entry price: ₹4,100–₹4,150 (near support and below DMA levels).
• 📈 Exit target: ₹4,500–₹4,600 (near resistance and analyst targets).
• 📌 Monitor RSI and MACD for bullish crossover before entry.

I can also chart DMART’s RSI and MACD trends to visualize its momentum shift—just say the word.