FIRSTCRY - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📉 FirstCry is a high-risk swing trade candidate with weak technicals, expensive valuation, and inconsistent earnings. Entry near ₹335 is optimal. If already held, consider exiting around ₹370–₹385.

📈 Positive

• 📈 DII holding increased by 2.39%, showing growing domestic institutional interest.
• 📈 Volume above average (6.99L vs 5.06L), indicating rising participation.
• 📉 Debt-to-equity ratio of 0.08 reflects a low-leverage capital structure.
• 📈 Sequential PAT improvement from ₹-15.9 Cr. to ₹3.18 Cr. shows signs of turnaround.

⚠️ Limitation

• 📉 RSI at 36.5 and MACD at -6.78 indicate bearish momentum.
• 📉 Trading below DMA 50 (₹367) and DMA 200 (₹407) confirms technical weakness.
• 💸 Stock P/E of 289 vs industry average of 41.6 suggests extreme overvaluation.
• 📉 ROCE of 2.33% and ROE of 1.17% reflect poor capital efficiency.
• 📉 FII holding declined by 1.81%, indicating reduced foreign investor confidence.

📉 Company Negative News

• 📉 FirstCry reported a sharp drop in quarterly profit, raising concerns over cost control and scalability.
• 📉 Analysts remain cautious due to high valuation and inconsistent earnings trajectory.

📈 Company Positive News

• 📈 The company is expanding its offline footprint and investing in private label growth.
• 📈 Management expects profitability to improve with scale and better inventory management.

🧸 Industry

• 🧸 The baby and kids retail sector is growing with rising urban demand and digital adoption.
• 📊 Industry P/E of 41.6 reflects moderate optimism across consumer retail peers.

✅ Conclusion

• 📉 FirstCry is a speculative swing trade candidate with weak technicals and high valuation risk.
• 📉 Optimal entry price: ₹335–₹340 (near support and oversold zone).
• 📈 Exit target: ₹370–₹385 (near DMA 50 and resistance).
• 📌 Wait for RSI to cross 45 and MACD to turn positive before entry.

Would you like a visual chart of FIRSTCRY’s RSI and MACD to support this analysis?