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JSWCEMENT - Swing Trade Analysis with AI Signals

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Rating: 3.3

Last Updated Time : 05 Feb 26, 02:16 am

Swing Trade Rating: 3.3

Stock Code JSWCEMENT Market Cap 15,826 Cr. Current Price 116 ₹ High / Low 162 ₹
Stock P/E 82.0 Book Value 48.3 ₹ Dividend Yield 0.00 % ROCE 7.16 %
ROE 3.38 % Face Value 10.0 ₹ DMA 50 120 ₹ DMA 200 133 ₹
Chg in FII Hold -1.10 % Chg in DII Hold 0.22 % PAT Qtr 95.9 Cr. PAT Prev Qtr 58.9 Cr.
RSI 47.4 MACD -1.48 Volume 13,36,595 Avg Vol 1Wk 14,05,394
Low price 107 ₹ High price 162 ₹ PEG Ratio -2.42 Debt to equity 0.56
52w Index 17.1 % Qtr Profit Var 3,016 % EPS 1.00 ₹ Industry PE 30.8

📊 JSW Cement (JSWCEMENT) shows weak fundamentals with low ROCE (7.16%) and ROE (3.38%), high valuation (P/E 82.0 vs. industry 30.8), and moderate debt (0.56). Technically, the stock is trading below both 50 DMA (120 ₹) and 200 DMA (133 ₹), with RSI at 47.4 indicating neutral momentum and MACD at -1.48 showing bearish pressure. While quarterly PAT has improved significantly, overall earnings quality remains weak. This makes it a risky candidate for swing trading, suitable only for short-term speculative moves.

💡 Optimal Entry Price: Around 112 ₹ – 116 ₹ (near current support zone).

🚪 Exit Strategy: If already holding, consider exiting near 125 ₹ – 130 ₹ (resistance at 200 DMA) or place a stop-loss below 110 ₹.

✅ Positive

  • Quarterly PAT improved sharply from 58.9 Cr. to 95.9 Cr.
  • DII holdings increased (+0.22%), showing some domestic institutional support.
  • EPS of 1.00 ₹ provides minimal earnings visibility.

⚠️ Limitation

  • High P/E ratio (82.0) compared to industry average (30.8) indicates overvaluation.
  • Low ROCE (7.16%) and ROE (3.38%) reflect poor capital efficiency.
  • MACD at -1.48 signals bearish momentum.
  • PEG ratio (-2.42) suggests weak growth prospects relative to valuation.

📉 Company Negative News

  • Decline in FII holding (-1.10%) reflects reduced foreign investor confidence.
  • Stock trading significantly below 52-week high (162 ₹), showing weakness in price action.

📈 Company Positive News

  • Quarterly profit variation of 3,016% highlights a sharp turnaround in profitability.
  • Stock trading near support levels, offering potential for short-term rebound.

🏭 Industry

  • Industry PE at 30.8 vs. JSWCEMENT PE at 82.0 suggests significant overvaluation compared to peers.
  • Cement sector benefits from infrastructure demand, but margins remain under pressure due to input costs.

🔎 Conclusion

JSW Cement is fundamentally weak with stretched valuations and low efficiency, though recent profit growth provides some short-term momentum. Swing traders may enter near 112 ₹ – 116 ₹ with a target around 125 ₹ – 130 ₹. Stop-loss below 110 ₹ is recommended. The stock offers limited swing trade potential with a rating of 3.3.

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