⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

JKCEMENT - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 05 May 26, 03:39 pm

Swing Trade Rating: 3.6

Stock Code JKCEMENT Market Cap 41,466 Cr. Current Price 5,352 ₹ High / Low 7,566 ₹
Stock P/E 37.8 Book Value 833 ₹ Dividend Yield 0.28 % ROCE 14.5 %
ROE 14.6 % Face Value 10.0 ₹ DMA 50 5,482 ₹ DMA 200 5,636 ₹
Chg in FII Hold -1.03 % Chg in DII Hold 1.26 % PAT Qtr 211 Cr. PAT Prev Qtr 176 Cr.
RSI 45.6 MACD 25.4 Volume 1,50,318 Avg Vol 1Wk 1,56,562
Low price 4,798 ₹ High price 7,566 ₹ PEG Ratio 8.82 Debt to equity 0.99
52w Index 20.0 % Qtr Profit Var 5.47 % EPS 143 ₹ Industry PE 30.5

📊 JK Cement (JKCEMENT) presents a cautious swing trading opportunity. The RSI at 45.6 suggests the stock is nearing oversold territory, while the MACD (25.4) indicates bullish momentum. The current price (₹5,352) is below both the 50 DMA (₹5,482) and 200 DMA (₹5,636), showing short-term weakness. Fundamentals are steady with ROCE (14.5%) and ROE (14.6%), but the high P/E (37.8) compared to industry PE (30.5) and PEG ratio (8.82) highlight stretched valuations. Debt-to-equity (0.99) is relatively high, adding financial risk.

💡 Optimal Entry Price: Around ₹5,200–₹5,300, near support levels.

📈 Exit Strategy (if already holding): Consider booking profits near ₹5,500–₹5,600, close to DMA resistances.

✅ Positive

  • ROCE (14.5%) and ROE (14.6%) show stable efficiency.
  • MACD positive (25.4) indicates bullish momentum.
  • Quarterly PAT improved from ₹176 Cr. to ₹211 Cr.
  • DII holdings increased (+1.26%), showing domestic investor support.

⚠️ Limitation

  • High P/E ratio (37.8) compared to industry PE (30.5).
  • PEG ratio of 8.82 signals expensive growth expectations.
  • Debt-to-equity ratio (0.99) is relatively high.
  • Price trading below both 50 DMA and 200 DMA shows weakness.

📉 Company Negative News

  • Stock trading far below 52-week high (₹7,566), reflecting weak sentiment.
  • FII holdings decreased (-1.03%), showing reduced foreign investor confidence.

📈 Company Positive News

  • Quarterly PAT growth of 5.47% sequentially.
  • EPS of ₹143 reflects strong earnings power.
  • Dividend yield of 0.28% provides modest returns.

🏭 Industry

  • Industry PE at 30.5 vs. JKCEMENT’s PE of 37.8 highlights premium valuation.
  • Cement sector benefits from infrastructure growth and housing demand.

🔎 Conclusion

JKCEMENT is fundamentally stable but technically weak in the short term. Swing traders may enter near ₹5,200–₹5,300, targeting exits around ₹5,500–₹5,600. While earnings are improving, high debt and stretched valuations require cautious risk management.

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