OLECTRA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | OLECTRA | Market Cap | 8,198 Cr. | Current Price | 1,001 ₹ | High / Low | 1,714 ₹ |
| Stock P/E | 55.9 | Book Value | 137 ₹ | Dividend Yield | 0.04 % | ROCE | 21.0 % |
| ROE | 14.2 % | Face Value | 4.00 ₹ | DMA 50 | 1,031 ₹ | DMA 200 | 1,227 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 0.13 % | PAT Qtr | 47.1 Cr. | PAT Prev Qtr | 52.8 Cr. |
| RSI | 53.0 | MACD | -22.8 | Volume | 18,11,270 | Avg Vol 1Wk | 24,21,956 |
| Low price | 867 ₹ | High price | 1,714 ₹ | PEG Ratio | 1.01 | Debt to equity | 0.28 |
| 52w Index | 15.8 % | Qtr Profit Var | 1.75 % | EPS | 17.9 ₹ | Industry PE | 28.2 |
📊 OLECTRA shows moderate potential for swing trading. The fundamentals are strong with ROCE 21.0% and ROE 14.2%, but valuation is stretched (P/E 55.9 vs industry 28.2). Technical indicators are mixed: RSI at 53.0 is neutral, MACD is negative, and the stock trades below both 50 DMA and 200 DMA, signaling weakness. The optimal entry price would be near ₹950–₹970, close to support levels. If already holding, consider exiting around ₹1,050–₹1,080, where resistance from the 50 DMA is expected.
✅ Positive
- Strong ROCE (21.0%) and ROE (14.2%) highlight efficient capital use.
- EPS at ₹17.9 shows consistent earnings power.
- PEG ratio at 1.01 suggests valuation is aligned with growth prospects.
- DII holdings increased (+0.13%), showing domestic institutional support.
- Debt-to-equity ratio at 0.28 is manageable.
⚠️ Limitation
- High P/E (55.9) compared to industry average (28.2) indicates overvaluation.
- Dividend yield is negligible (0.04%), offering little passive income.
- Stock trading below both 50 DMA (₹1,031) and 200 DMA (₹1,227), signaling bearish trend.
- FII holdings decreased (-0.14%), showing reduced foreign investor confidence.
📉 Company Negative News
- Quarterly PAT declined from ₹52.8 Cr. to ₹47.1 Cr.
- MACD negative (-22.8) indicates weak momentum.
- Stock has fallen significantly from its 52-week high of ₹1,714.
📈 Company Positive News
- Strong ROCE and ROE support long-term fundamentals.
- EPS growth remains steady despite short-term profit decline.
- DII inflows provide some institutional backing.
🏭 Industry
- Industry P/E at 28.2 is much lower than OLECTRA’s, suggesting peers may be better valued.
- EV and electric bus industry has strong long-term growth potential, driven by government policies and demand for sustainable transport.
📝 Conclusion
OLECTRA is a moderately good swing trade candidate with strong fundamentals but weak technicals and stretched valuation. Entry is advisable near ₹950–₹970, with exit around ₹1,050–₹1,080 if already holding. Long-term investors may benefit from its industry growth potential, but short-term traders should wait for stronger technical signals before aggressive positioning.