KAJARIACER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.6

📊 Kajaria Ceramics shows moderate potential for swing trading. The stock is currently trading below both its 50 DMA (1,116 ₹) and 200 DMA (1,129 ₹), reflecting short-term weakness. RSI at 43.4 suggests the stock is nearing oversold territory, while MACD remains negative, indicating bearish momentum. However, strong quarterly profit growth (+30%) and very low debt-to-equity (0.04) provide fundamental support.

💡 Optimal Entry Price: Around 980–1,000 ₹ (near support zone).

🚪 Exit Strategy: If already holding, consider exiting near 1,150–1,180 ₹ (resistance around DMA levels) or if RSI crosses 65 with weakening momentum.

✅ Positive

• 📈 Quarterly profit growth of +30% (PAT rose from 99.7 Cr. to 121 Cr.)
• 💰 Very low debt-to-equity ratio (0.04)
• 🏦 ROCE at 16.8% and consistent dividend yield (0.85%)
• 📊 EPS of 15.4 ₹ supports earnings strength

⚠️ Limitation

• 📉 High P/E ratio (50.7) compared to industry average (46.2)
• 📊 Negative PEG ratio (-6.19) indicates poor growth-adjusted valuation
• 📉 Weak trading volume (60,358 vs 2,50,006 average)
• 📉 Stock trading below both 50 DMA and 200 DMA

🚨 Company Negative News

• 📉 Decline in institutional investor holdings (FII -0.98%, DII -1.39%)
• 📊 Technical weakness with negative MACD and below DMA levels

🌟 Company Positive News

• 📈 Strong quarterly PAT growth and improved profitability
• 💡 Stable fundamentals with low leverage and consistent dividend payout

🏭 Industry

• 📊 Industry P/E at 46.2, slightly lower than Kajaria’s valuation
• 🏗️ Construction and real estate demand continues to support ceramic tile sector growth

📌 Conclusion

⚖️ Kajaria Ceramics is a moderately good candidate for swing trading. Fundamentals are strong, but technical indicators show weakness. A cautious entry near 980–1,000 ₹ could provide upside potential toward 1,150–1,180 ₹. Traders should closely monitor RSI and volume trends before committing to positions.

Would you like me to also prepare a support and resistance chart so you can visually track the swing trade setup?