KAJARIACER - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.5

🏠 Swing Trade Analysis: KAJARIACER (Kajaria Ceramics Ltd.)

Kajaria Ceramics offers a technically stable and fundamentally sound setup for swing trading, though valuation and sentiment indicators suggest a cautious approach.

✅ Strengths

Technical Positioning: Price ₹1,219 is slightly above 50-DMA (₹1,204) and well above 200-DMA (₹1,123), indicating a mild uptrend.

MACD (0.65): Positive — suggests early bullish momentum.

Profitability: ROCE (16.8%) and ROE (10.8%) are solid — efficient capital usage.

Earnings Growth: PAT jumped from ₹29.4 Cr to ₹99.7 Cr — strong quarterly rebound.

Debt-to-Equity: Very low at 0.04 — strong financial health.

Dividend Yield: 0.74% — adds holding incentive.

⚠️ Weaknesses

Valuation: P/E of 64.4 is significantly above industry average (46.4), and PEG ratio of -7.87 suggests overvaluation and inconsistent growth expectations.

RSI (46.7): Neutral to weak — no strong momentum signal.

Volume: Below weekly average — reduced short-term interest.

Institutional Sentiment: FII (-3.24%) and DII (-0.29%) holdings declined — bearish signal.

52w Index (56.9%): Trading in mid-range — sentiment is lukewarm.

🎯 Optimal Entry Price

Buy Zone: ₹1,190–₹1,210

Near 50-DMA support; wait for RSI to rise above 50 and MACD to strengthen.

🚪 Exit Strategy (If Holding)

Target Exit: ₹1,280–₹1,320

Near short-term resistance; exit if RSI approaches 65 or MACD flattens.

Stop Loss: ₹1,160

Below this level, trend support weakens.

⚖️ Verdict

KAJARIACER is a moderate swing trade candidate, suitable for traders who can manage entry near support and exit on short-term strength. Fundamentals are stable, but valuation and sentiment warrant caution.

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