FIVESTAR - Swing Trade Analysis

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

Swing Trade Rating: 2.9

FIVESTAR is currently under steep technical pressure, despite boasting strong fundamentals. Its elevated valuation and sharply declining momentum indicate high risk in the short term — but there's potential for a speculative bounce if oversold signals spark interest.

📊 Fundamental Overview

Valuation & Growth

P/E: 122 vs Industry PE: 25.2 → Extremely overvalued

EPS: ₹65.6, PEG: 0.97 → Decent growth, but price far exceeds earnings strength

Book Value: Not provided → Limits full intrinsic valuation view

Profitability & Stability

ROE: 16%, ROCE: 17% → Strong management efficiency

Debt-to-Equity: 0.70 → Reasonable leverage control

Dividend Yield: 0.31% → Minimal passive income

📉 Technical Breakdown

Current Price: ₹649

DMA 50: ₹732, DMA 200: ₹727 → Price well below averages

RSI: 25.5 → Deep in oversold territory, bounce possibility

MACD: -17.9 → Strong bearish momentum

Volume Surge: 3x weekly avg → Indicates accumulating interest despite decline

52W Index: 16.3% → Heavily discounted from highs of ₹944

🎯 Swing Trade Strategy

Thesis: Oversold conditions with strong fundamentals provide a speculative short-term opportunity

Warning: Need price confirmation — MACD needs to flatten, RSI must begin climbing

✅ Optimal Entry Zone

Buy Range: ₹635–₹645 Enter near current support if reversal cues emerge.

🚪 Exit Strategy

Target Price: ₹705–₹725 Approaching DMA resistance zone — watch RSI near 50 as exit trigger.

Stop-Loss: ₹615 Breach below this risks prolonged downtrend.

Already holding?

Hold tight if price stabilizes above ₹640.

Monitor MACD and RSI for reversal — exit ₹705–₹725 range unless momentum strengthens.

Want help building a watchlist of similar high-ROE but oversold stocks? I can line up a few candidates tailored to your style.

Edit in a page