DOMS - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.8

📊 DOMS shows decent potential for swing trading. Current price (₹2,600) is above both 50 DMA (₹2,541) and 200 DMA (₹2,524), indicating short-term bullish support. RSI at 48.8 is neutral, while MACD (2.24) suggests mild positive momentum. Fundamentals are strong with ROCE (26.0%) and ROE (21.7%), supported by low debt (0.11). However, valuation is stretched with a P/E of 77.4 compared to industry average of 37.5. Optimal entry would be near ₹2,550–₹2,580 on dips. If already holding, exit near ₹2,850–₹2,900 resistance unless momentum strengthens further.

✅ Positive

• 📈 Strong ROCE (26.0%) and ROE (21.7%) show efficient capital use
• 📉 Low debt-to-equity (0.11) ensures financial stability
• 📊 EPS at ₹33.6 supports valuation strength
• 📈 DII holding increased (+1.47%), showing domestic investor confidence

⚠️ Limitation

• 📉 High P/E ratio (77.4 vs industry 37.5)
• 📊 RSI at 48.8 indicates limited upside momentum
• 📉 Dividend yield at 0.12% is very low
• ⚠️ FII holding decreased (-0.58%)

🚨 Company Negative News

• 📉 Valuation stretched compared to industry peers
• ⚠️ Trading well below 52-week high (₹3,065)

🌟 Company Positive News

• 📈 PAT growth from ₹55.5 Cr. to ₹55.8 Cr. (+16%)
• 📊 Strong fundamentals with high ROCE and ROE

🏭 Industry

• 📊 Industry P/E at 37.5, much lower than company’s 77.4
• 📈 Consumer goods sector has steady demand outlook

📌 Conclusion

⚖️ DOMS is a fair swing trade candidate with strong fundamentals but stretched valuations. Entry is favorable near ₹2,550–₹2,580 on dips. For existing holders, exit near ₹2,850–₹2,900 resistance is advisable unless RSI and MACD show stronger recovery.

I can also highlight DOMS’s short-term support and resistance zones in a simple chart so you can visually track entry and exit levels.