FLUOROCHEM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📈 Analysis: FLUOROCHEM offers a solid swing trade setup with stable technicals and strong earnings momentum. The current price of ₹3,660 is aligned with the 50 DMA (₹3,656) and just below the 200 DMA (₹3,674), suggesting a potential breakout zone. RSI at 49.8 and MACD at 4.89 indicate neutral-to-positive momentum. The company has strong EPS (₹59.1), improving PAT, and rising institutional interest. However, valuation concerns persist due to a high P/E (62.1), negative PEG ratio (-7.04), and low dividend yield (0.08%). ROCE (11.0%) and ROE (9.28%) are decent, and the low debt-to-equity ratio (0.31) adds financial resilience.

🎯 Optimal Entry Price: ₹3,630–₹3,650 (on minor pullback near DMA zone)

🚪 Exit Strategy (if holding): Consider exiting near ₹3,800–₹3,850 or if RSI crosses 65 with MACD flattening.

✅ Positive

• 📈 Price near 50 & 200 DMA — potential breakout setup
• 📊 PAT growth from ₹167 Cr. to ₹185 Cr. — strong earnings momentum
• 📈 EPS of ₹59.1 — robust profitability
• 📈 FII (+0.11%) and DII (+1.26%) holdings increased — institutional confidence
• 💸 Low debt-to-equity ratio (0.31) — financial stability

⚠️ Limitation

• 📉 High P/E (62.1) vs industry — overvaluation risk
• 📉 PEG ratio of -7.04 — poor growth valuation
• 📉 Dividend yield of 0.08% — minimal income support
• 📉 Volume below weekly average — reduced trading interest

📰 Company Negative News

• No major public negative news, but valuation and volume concerns are cautionary

🌟 Company Positive News

• Strong quarterly profit growth and rising institutional interest reflect improving sentiment and operational strength

🏭 Industry

• Industry P/E is 32.5 — FLUOROCHEM trades at a premium, reflecting high growth expectations
• Chemicals sector benefits from industrial demand and specialty product innovation

🧾 Conclusion

FLUOROCHEM is a technically stable and fundamentally strong swing trade candidate. Entry near support offers a tactical opportunity. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also help you track FLUOROCHEM’s RSI and MACD trends over the next few sessions to fine-tune your timing.