FACT - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.8

FACT shows signs of potential but is weighed down by extreme valuation metrics and weak fundamentals. While its price has held above key averages, trading it requires caution and a tight strategy.

🧾 Fundamental Analysis

Valuation Concerns

Stock P/E: 2,739 is extraordinarily inflated vs Industry PE: 26.1, indicating speculative pricing or distorted earnings.

EPS: ₹0.64, Book Value: ₹21.2 → Suggests price far exceeds intrinsic worth

PEG Ratio: -43.6 → Implies negative growth prospects

Profitability & Return

ROE: 1.63%, ROCE: 8.64% → Weak returns, poor capital efficiency

Qtr Profit Var: -52.6% despite PAT jump → Earnings volatility, likely one-off gains

Financial Health

Debt-to-Equity: 1.32 → Manageable but above preferred range

Dividend Yield: 0.10% → Minimal income for holding

📉 Technical Analysis

Current Price: ₹943

Trading above 50-DMA (₹937) and 200-DMA (₹871) → Positive momentum intact

MACD: -3.24, RSI: 47.5 → Mild bearish bias, but not deeply oversold

Volume: 2.99L vs 5.65L avg → Short-term interest fading

52W Index: 69.2% → Some upside potential, resistance near ₹1,100

🎯 Swing Trade Plan

Fundamentally shaky, but could suit an aggressive short-term play if momentum resumes.

✅ Optimal Entry Zone

Buy Range: ₹918–₹935 Enter on dip near DMA support zones for limited downside.

🚪 Exit Strategy

Target Price: ₹1,050–₹1,090 Aim below 52W high to pre-empt resistance.

Stop-Loss: ₹899 Below 50-DMA to cut early if trend reverses.

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