JSWSTEEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | JSWSTEEL | Market Cap | 3,09,790 Cr. | Current Price | 1,267 ₹ | High / Low | 1,307 ₹ |
| Stock P/E | 43.0 | Book Value | 341 ₹ | Dividend Yield | 0.22 % | ROCE | 10.2 % |
| ROE | 8.89 % | Face Value | 1.00 ₹ | DMA 50 | 1,215 ₹ | DMA 200 | 1,151 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.10 % | PAT Qtr | 979 Cr. | PAT Prev Qtr | 1,493 Cr. |
| RSI | 59.6 | MACD | 24.5 | Volume | 15,96,002 | Avg Vol 1Wk | 19,05,305 |
| Low price | 935 ₹ | High price | 1,307 ₹ | PEG Ratio | -1.63 | Debt to equity | 0.84 |
| 52w Index | 89.2 % | Qtr Profit Var | -28.4 % | EPS | 26.5 ₹ | Industry PE | 22.6 |
📊 JSW Steel (JSWSTEEL) shows moderate potential for swing trading. The RSI at 59.6 indicates healthy momentum, while the MACD (24.5) is positive, reflecting bullish signals. The current price (₹1,267) is above both the 50 DMA (₹1,215) and 200 DMA (₹1,151), showing technical strength. However, fundamentals are weak with ROCE (10.2%) and ROE (8.89%), while the high P/E (43.0) compared to industry PE (22.6) and negative PEG ratio (-1.63) highlight overvaluation. PAT declined sequentially (₹1,493 Cr. → ₹979 Cr.), raising concerns.
💡 Optimal Entry Price: Around ₹1,240–₹1,260, near DMA support.
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,300–₹1,310, close to the recent high.
✅ Positive
- Price trading above both 50 DMA and 200 DMA shows technical strength.
- MACD positive (24.5) indicates bullish momentum.
- Large market cap (₹3,09,790 Cr.) provides stability.
- DII holdings increased (+0.10%), showing domestic investor support.
⚠️ Limitation
- High P/E ratio (43.0) compared to industry PE (22.6).
- Weak ROCE (10.2%) and ROE (8.89%) show modest efficiency.
- Negative PEG ratio (-1.63) signals poor growth relative to valuation.
- Debt-to-equity ratio (0.84) adds financial risk.
📉 Company Negative News
- PAT declined from ₹1,493 Cr. to ₹979 Cr.
- Quarterly profit variation shows -28.4% decline.
📈 Company Positive News
- Price recovery from 52-week low (₹935) to current levels shows resilience.
- EPS of ₹26.5 reflects consistent earnings power.
🏭 Industry
- Industry PE at 22.6 vs. JSWSTEEL’s PE of 43.0 highlights overvaluation.
- Steel sector benefits from infrastructure demand but faces margin pressures.
🔎 Conclusion
JSWSTEEL is technically strong but fundamentally overvalued with declining profits. Swing traders may cautiously enter near ₹1,240–₹1,260, targeting exits around ₹1,300–₹1,310. Risk management is essential given stretched valuations and weak efficiency metrics.