OLECTRA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | OLECTRA | Market Cap | 8,729 Cr. | Current Price | 1,062 ₹ | High / Low | 1,714 ₹ |
| Stock P/E | 59.5 | Book Value | 137 ₹ | Dividend Yield | 0.04 % | ROCE | 21.0 % |
| ROE | 14.2 % | Face Value | 4.00 ₹ | DMA 50 | 1,175 ₹ | DMA 200 | 1,316 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 0.13 % | PAT Qtr | 47.1 Cr. | PAT Prev Qtr | 52.8 Cr. |
| RSI | 41.2 | MACD | -38.4 | Volume | 6,59,203 | Avg Vol 1Wk | 6,81,003 |
| Low price | 965 ₹ | High price | 1,714 ₹ | PEG Ratio | 1.07 | Debt to equity | 0.28 |
| 52w Index | 12.9 % | Qtr Profit Var | 1.75 % | EPS | 17.9 ₹ | Industry PE | 31.8 |
📊 OLECTRA shows strong fundamentals but weak technicals, making it a cautious candidate for swing trading. The stock is currently at ₹1,062, trading below both its 50 DMA (₹1,175) and 200 DMA (₹1,316), reflecting bearish sentiment. RSI at 41.2 is near oversold territory, while MACD at -38.4 confirms downward momentum. Despite this, ROCE (21%) and ROE (14.2%) highlight operational strength. Optimal entry would be in the ₹1,000–₹1,030 range. If already holding, exit near ₹1,170–₹1,200, where resistance from the 50 DMA is expected.
✅ Positive
- Strong ROCE (21%) and ROE (14.2%) indicate efficient capital use.
- EPS of ₹17.9 supports valuation strength.
- PEG ratio of 1.07 suggests fair valuation relative to growth.
- Debt-to-equity ratio at 0.28 shows manageable leverage.
- DII holdings increased (+0.13%), showing domestic institutional support.
⚠️ Limitation
- High P/E of 59.5 compared to industry PE of 31.8 indicates overvaluation.
- Dividend yield of 0.04% offers negligible income return.
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- Volume slightly below weekly average, indicating reduced participation.
📉 Company Negative News
- FII holdings decreased (-0.14%), showing reduced foreign investor confidence.
- MACD strongly negative (-38.4), confirming bearish momentum.
📈 Company Positive News
- Quarterly PAT stable (₹47.1 Cr. vs ₹52.8 Cr.), showing resilience.
- Strong ROCE and ROE highlight operational efficiency.
- DII inflows (+0.13%) show confidence from domestic institutions.
🏭 Industry
- Industry PE at 31.8 is much lower than OLECTRA’s 59.5, suggesting overvaluation.
- EV and electric bus sector has long-term growth potential, supported by government initiatives.
🔎 Conclusion
OLECTRA is a moderate swing candidate with strong fundamentals but weak technicals. Entry near ₹1,000–₹1,030 offers margin of safety. Exit around ₹1,170–₹1,200 is advisable if already holding, as resistance is expected near the 50 DMA. Risk management is essential due to high valuation and bearish momentum indicators.