FLUOROCHEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | FLUOROCHEM | Market Cap | 42,177 Cr. | Current Price | 3,838 ₹ | High / Low | 3,929 ₹ |
| Stock P/E | 61.0 | Book Value | 647 ₹ | Dividend Yield | 0.08 % | ROCE | 12.3 % |
| ROE | 10.2 % | Face Value | 1.00 ₹ | DMA 50 | 3,589 ₹ | DMA 200 | 3,520 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.67 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 65.0 | MACD | 28.4 | Volume | 3,97,804 | Avg Vol 1Wk | 1,79,240 |
| Low price | 2,917 ₹ | High price | 3,929 ₹ | PEG Ratio | -3.04 | Debt to equity | 0.22 |
| 52w Index | 91.0 % | Qtr Profit Var | 2.83 % | EPS | 61.7 ₹ | Industry PE | 29.1 |
Fluorochem (FLUOROCHEM) shows moderate fundamentals with ROCE (12.3%) and ROE (10.2%), supported by EPS of ₹61.7. The current price (₹3,838) is trading above both the 50 DMA (₹3,589) and 200 DMA (₹3,520), confirming bullish momentum. RSI at 65.0 suggests nearing overbought territory, while MACD at 28.4 supports positive momentum. Volume is significantly higher than average, reflecting strong participation. However, valuation is stretched with a high P/E of 61.0 compared to industry average (29.1), and a negative PEG ratio (-3.04) highlights poor valuation relative to growth. Overall, Fluorochem is technically strong but fundamentally weak, making it a speculative swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹3,600–₹3,650 (near 50 DMA support) is favorable for swing trading.
📈 Exit Strategy
If already holding, consider exiting near ₹3,900–₹3,950 (resistance zone close to recent highs). A strict stop-loss below ₹3,550 is advisable to manage risk.
✅ Positive
- 📌 EPS of ₹61.7 supports earnings stability.
- 📌 ROCE (12.3%) and ROE (10.2%) show moderate efficiency.
- 📌 Price trading above both 50 DMA and 200 DMA confirms bullish momentum.
- 📌 DII holdings increased (+0.67%), showing domestic institutional confidence.
- 📌 Quarterly PAT growth from ₹139 Cr. to ₹172 Cr. (+2.83%).
⚠️ Limitation
- 📌 High P/E (61.0) compared to industry average (29.1) suggests overvaluation.
- 📌 Negative PEG ratio (-3.04) highlights poor valuation relative to growth.
- 📌 Dividend yield is negligible (0.08%).
- 📌 FII holdings decreased (-0.03%), showing reduced foreign investor confidence.
📰 Company Negative News
- 📌 No major negative news reported, but valuation concerns and weak efficiency persist.
🌟 Company Positive News
- 📌 Quarterly PAT growth and increased domestic institutional stake.
🏭 Industry
- 📌 Industry P/E at 29.1 is much lower than FLUOROCHEM’s 61.0, suggesting relative overvaluation.
- 📌 Chemicals sector outlook remains stable with demand from industrial applications.
🔎 Conclusion
Fluorochem is technically strong but fundamentally weak, making it a speculative swing trade candidate. Entry near ₹3,600–₹3,650 offers a reasonable setup, with profit booking advisable near ₹3,900–₹3,950. A strict stop-loss below ₹3,550 is essential to manage risk due to high valuation and weak fundamentals.
Would you like me to expand this into a short-term trading plan or a peer comparison to see how it stacks up against other chemical companies?