INDIACEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.6
| Stock Code | INDIACEM | Market Cap | 11,031 Cr. | Current Price | 356 ₹ | High / Low | 490 ₹ |
| Book Value | 310 ₹ | Dividend Yield | 0.00 % | ROCE | -5.85 % | ROE | -9.32 % |
| Face Value | 10.0 ₹ | DMA 50 | 409 ₹ | DMA 200 | 394 ₹ | Chg in FII Hold | 0.30 % |
| Chg in DII Hold | 0.55 % | PAT Qtr | 2.00 Cr. | PAT Prev Qtr | -6.86 Cr. | RSI | 29.8 |
| MACD | -21.1 | Volume | 1,27,481 | Avg Vol 1Wk | 2,11,956 | Low price | 253 ₹ |
| High price | 490 ₹ | Debt to equity | 0.14 | 52w Index | 43.5 % | Qtr Profit Var | 101 % |
| EPS | -3.29 ₹ | Industry PE | 27.0 |
📊 India Cements (INDIACEM) currently shows weak technical and fundamental signals for swing trading. The RSI at 29.8 indicates oversold conditions, while the MACD (-21.1) confirms strong bearish sentiment. The price is trading well below both the 50 DMA (409 ₹) and 200 DMA (394 ₹), reflecting a downtrend. Fundamentally, the company is struggling with negative ROCE (-5.85%) and ROE (-9.32%), along with negative EPS (-3.29 ₹). Although quarterly profits turned positive (PAT 2 Cr. vs -6.86 Cr. previously), overall profitability remains weak. The book value (310 ₹) is close to current price (356 ₹), offering some valuation cushion, but lack of dividends and poor earnings limit attractiveness.
💡 Optimal Entry Price: Around 340–355 ₹, near current levels, but only if reversal signals appear with strong volume support.
🚪 Exit Strategy (if already holding): Consider exiting near 380–390 ₹ if a rebound occurs, or cut losses if the price falls below 330 ₹ with strong volume.
Positive
- Quarterly profit improved (PAT turned positive at 2 Cr.).
- Book value (310 ₹) close to current price provides valuation support.
- Debt-to-equity ratio at 0.14 indicates low leverage.
- FII (+0.30%) and DII (+0.55%) holdings increased, showing investor confidence.
Limitation
- Negative ROCE (-5.85%) and ROE (-9.32%) highlight poor efficiency.
- EPS is negative (-3.29 ₹), showing weak earnings.
- No dividend yield (0.00%), limiting investor returns.
- Price trading well below 50 DMA and 200 DMA confirms bearish trend.
Company Negative News
- Consistent weak profitability despite slight improvement in quarterly results.
- Technical indicators (RSI, MACD) suggest continued selling pressure.
Company Positive News
- Quarterly profit turned positive after losses.
- Institutional inflows (FII and DII) show investor support.
- 52-week performance shows 43.5% gain, reflecting past investor interest.
Industry
- Industry P/E at 27.0 highlights sector peers are more reasonably valued.
- Cement sector remains cyclical, influenced by infrastructure demand and government projects.
Conclusion
⚠️ India Cements is currently not an ideal candidate for swing trading due to weak fundamentals, negative profitability, and bearish technicals. While low debt and recent profit improvement are positives, the overall risk remains high. Traders should only enter near 340–355 ₹ with clear reversal signals. If already holding, exit on rebounds near 380–390 ₹ and protect downside below 330 ₹.