ESCORTS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📊 ESCORTS shows solid potential for swing trading. Fundamentals are stable with low debt and consistent profitability, while technical indicators suggest neutral-to-weak momentum (RSI 45.8, MACD negative). The stock is trading close to its 50 DMA (3,666 ₹) and 200 DMA (3,535 ₹), indicating consolidation. Optimal entry would be around 3,550–3,580 ₹. If already holding, consider exiting near 3,950–4,050 ₹ if momentum strengthens.

✅ Positive

• 📈 Strong EPS of 209 ₹ supports earnings visibility.
• 💰 Low debt-to-equity (0.01) ensures financial stability.
• 📊 Consistent quarterly PAT growth (321 Cr. vs 315 Cr.).
• 🌍 Increase in both FII (+0.05%) and DII (+0.37%) holdings shows investor confidence.
• 📉 Dividend yield of 0.75% adds shareholder value.

⚠️ Limitation

• 📉 RSI at 45.8 and negative MACD (-3.86) indicate weak short-term momentum.
• 📊 ROCE (13.7%) and ROE (12.8%) are moderate compared to peers.
• 📉 Current price close to resistance levels (50 DMA and 52-week high).
• 📊 PEG ratio of 1.77 suggests moderate overvaluation relative to growth.

🚨 Company Negative News

No major negative news reported, but technical weakness and moderate efficiency ratios limit upside in the short term.

🌟 Company Positive News

Stable profitability, strong EPS, and rising institutional interest highlight resilience and long-term confidence.

🏭 Industry

The farm equipment and machinery industry trades at an average P/E of 34.2. ESCORTS trades at a similar P/E (33.4), suggesting fair valuation relative to peers.

📌 Conclusion

ESCORTS is a fundamentally stable candidate for swing trading with neutral technicals. Entry near 3,550–3,580 ₹ is optimal. Exit strategy should target 3,950–4,050 ₹ if momentum improves. The stock offers stability and institutional support, but caution is advised due to moderate efficiency and weak technical indicators.

I can also prepare a comparison with other tractor and farm equipment stocks to see if ESCORTS offers stronger swing trade potential than its peers. Would you like me to set that up?