JKCEMENT - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 Technically oversold with potential for short-term bounce, but valuation and earnings volatility limit upside.

🎯 Optimal Entry Price: ₹5,650–₹5,700

🚪 Exit Target (if already holding): ₹6,450–₹6,500

🔍 Positive

• 📉 RSI at 26.4 indicates oversold conditions, ideal for swing entry.
• 📊 MACD at -151 suggests bearish momentum may be bottoming out.
• 📈 EPS of ₹146 and ROE of 14.6% show solid earnings capability.
• 📉 Price near 200 DMA (₹5,880) offers technical support.
• 🌍 FII holding increased by 1.01%, indicating institutional confidence.

⚠️ Limitation

• 📉 Volume below weekly average (1.77L vs 2.28L), showing weak participation.
• 📉 High P/E of 40.9 vs industry average of 36.4, suggesting overvaluation.
• 📉 PEG ratio of 9.56 implies expensive growth expectations.
• 📉 Dividend yield at 0.26% is low, reducing passive income appeal.
• 📉 PAT dropped from ₹332 Cr to ₹176 Cr, indicating earnings volatility.

📉 Company Negative News

• 📉 Recent quarterly earnings missed expectations, leading to a sharp decline in stock price.
• 📉 Margin pressure due to rising input costs despite volume growth.

📈 Company Positive News

• 🏭 Expansion at Prayagraj unit signals long-term capacity growth.
• 📈 YoY profit growth of 17% in Q2 driven by higher cement volumes.
• 🏦 Brokerages maintain bullish outlook with revised targets above ₹7,200.

🏗️ Industry

• 🏗️ Cement sector benefits from infrastructure push and housing demand.
• 📉 Rising input costs and margin pressures are common across the industry.

✅ Conclusion

• 📉 JK Cement is technically oversold and may offer a short-term bounce for swing traders.
• 🎯 Entry around ₹5,650–₹5,700 with exit near ₹6,450–₹6,500 is optimal.
• 📊 Long-term investors should monitor earnings consistency and margin recovery before re-entry.

Would you like me to compare JK Cement with peers like UltraTech or Shree Cement for swing trade potential?