KAJARIACER - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.4

🏠 Kajaria Ceramics Ltd (KAJARIACER) Swing Trade Analysis

Kajaria Ceramics is showing bullish momentum supported by strong technical indicators and improving profitability. Despite a high valuation, the stock is forming a reversal pattern and is well-positioned for a short-term upswing, making it a good candidate for swing trading.

✅ Strengths

Technical Indicators

RSI: 51.9 — neutral zone, with room for upside

MACD: +28.2 — strong bullish momentum

Price above both 50 DMA (₹1,103) and 200 DMA (₹1,074) — confirms uptrend

Volume: 17.95L vs avg 15.66L — rising participation

Fundamentals

ROCE: 16.8% and ROE: 12.8% — solid efficiency

EPS: ₹19.7 — decent earnings base

PAT Qtr: ₹111 Cr vs ₹72.8 Cr — 16.9% growth

Debt-to-equity: 0.10 — low leverage

Dividend Yield: 1.03% — modest income support

52-Week Index: +50.1% — strong relative strength

⚠️ Weaknesses

Valuation

P/E: 52.8 vs industry average of 41.8 — overvalued

Book Value: ₹172 vs current price ₹1,163 — trading at 6.7x book

PEG Ratio: -16.0 — unreliable due to inconsistent growth estimates

Institutional Sentiment

FII holding ↓ 3.24%

DII holding ↓ 0.29% — mild selling pressure

🎯 Optimal Entry Price

Entry Zone: ₹1,140–₹1,160

Near breakout level and 50 DMA support

Confirm entry with RSI > 55 and MACD continuation

Look for bullish candlestick confirmation (e.g., engulfing, morning star)

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹1,220–₹1,280

Based on resistance and Fibonacci extension levels

Stop Loss: ₹1,095

Below 50 DMA and recent support zone

📌 Summary

Kajaria Ceramics is a technically strong, fundamentally stable stock with bullish momentum. Entry near ₹1,140–₹1,160 offers a favorable swing setup. If already holding, consider exiting near ₹1,220–₹1,280 or trail stop loss to ₹1,095.

Would you like to explore similar setups in the building materials or home improvement sector like Cera Sanitaryware or Somany Ceramics?

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