INDIACEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | INDIACEM | Market Cap | 12,160 Cr. | Current Price | 392 ₹ | High / Low | 490 ₹ |
| Stock P/E | 131 | Book Value | 324 ₹ | Dividend Yield | 0.00 % | ROCE | 1.76 % |
| ROE | 0.94 % | Face Value | 10.0 ₹ | DMA 50 | 399 ₹ | DMA 200 | 393 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.10 % | PAT Qtr | 71.8 Cr. | PAT Prev Qtr | 10.9 Cr. |
| RSI | 47.7 | MACD | 6.64 | Volume | 4,60,181 | Avg Vol 1Wk | 11,09,665 |
| Low price | 297 ₹ | High price | 490 ₹ | PEG Ratio | 4.24 | Debt to equity | 0.13 |
| 52w Index | 49.5 % | Qtr Profit Var | 218 % | EPS | 2.11 ₹ | Industry PE | 30.5 |
INDIACEM shows mixed fundamentals. While quarterly profits surged (PAT 71.8 Cr vs 10.9 Cr), ROE (0.94%) and ROCE (1.76%) remain weak, indicating poor capital efficiency. The stock trades near its DMA 200 (393 ₹) and slightly below DMA 50 (399 ₹), suggesting indecision. RSI (47.7) is neutral, while MACD (6.64) shows mild bullishness. Valuation is stretched with a very high P/E (131 vs industry 30.5) and PEG ratio (4.24), making the stock expensive relative to growth.
✅ Optimal Entry Price: Around 380–390 ₹ (near DMA support)
📤 Exit Strategy if Holding: Exit near 430–440 ₹ resistance zone, or if price falls below 370 ₹ support.
🌟 Positive
- Quarterly PAT jumped significantly (71.8 Cr vs 10.9 Cr).
- EPS improved to 2.11 ₹.
- Low debt-to-equity ratio (0.13), showing financial stability.
- FII and DII holdings increased slightly, indicating investor confidence.
⚠️ Limitation
- Extremely high P/E (131) compared to industry average (30.5).
- Weak ROE (0.94%) and ROCE (1.76%).
- No dividend yield (0%).
- Trading volume lower than average, suggesting reduced momentum.
📰 Company Negative News
- Valuation concerns due to high P/E and PEG ratio (4.24).
- Capital efficiency remains poor despite profit growth.
📈 Company Positive News
- Quarterly profits surged over 218% compared to previous quarter.
- EPS turned positive, showing earnings recovery.
- Institutional investors (FII +0.08%, DII +0.10%) increased holdings.
🏭 Industry
- Industry PE is 30.5, much lower than INDIACEM’s 131, highlighting overvaluation.
- Cement sector demand remains steady, supporting long-term growth.
✅ Conclusion
INDIACEM is a moderately risky swing trade candidate. Strong profit growth and low debt are positives, but weak efficiency ratios and stretched valuations limit upside. Entry near 380–390 ₹ offers a safer margin, with exit around 430–440 ₹. Traders should be cautious of overvaluation and monitor volume trends for confirmation of momentum.