FLUOROCHEM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📊 FLUOROCHEM shows moderate fundamentals with improving profits and institutional support, but high valuation and weak momentum indicators limit its swing trade potential. The stock is trading near its 200 DMA, suggesting cautious entry opportunities.

✅ Optimal Entry Price: 3,500–3,550 ₹ (near DMA 50 and DMA 200 support)

📈 Exit Strategy: If already holding, consider exiting near 4,200–4,300 ₹ resistance zone or if RSI crosses 65.

Positive

• 💡 PAT growth from 185 Cr. to 195 Cr. shows earnings improvement.
• 📈 Quarterly profit variation (35.4%) highlights strong performance momentum.
• 🌍 Increase in DII holding (+1.26%) signals domestic institutional confidence.
• 🛡️ Debt-to-Equity (0.22) remains low, ensuring financial stability.
• 💰 EPS (63.7 ₹) supports valuation strength.

Limitation

• ⚠️ P/E (56.5) is significantly higher than industry PE (26.6), suggesting premium valuation.
• 📉 RSI (53.6) is neutral, showing limited immediate momentum.
• 📉 MACD (-8.06) indicates weak short-term trend.
• 📉 Dividend Yield (0.08%) is very low, offering minimal income support.
• 📉 Volume (37,581) is slightly below 1-week average (39,987), showing reduced trader participation.

Company Negative News

• 📉 PEG ratio (-6.41) highlights poor valuation relative to growth.

Company Positive News

• 🌍 Increase in DII holding (+1.26%) reflects strong domestic institutional support.
• 📈 PAT growth and quarterly profit variation show operational improvement.

Industry

• 🏭 Industry PE (26.6) is far lower than FLUOROCHEM’s PE (56.5), showing premium valuation.
• 📊 Specialty chemicals sector outlook remains positive with demand tied to industrial and export markets.

Conclusion

🔑 FLUOROCHEM is a cautious swing trade candidate with improving profits and institutional support but high valuation and weak momentum indicators. Entry near 3,500–3,550 ₹ offers a limited-risk setup. Exit near 4,200–4,300 ₹ is advisable if holding, as momentum remains neutral and valuation risks persist.

I can also prepare a side-by-side HTML comparison of FLUOROCHEM with GESHIP so you can evaluate which one offers stronger swing trade potential.