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ONESOURCE - Swing Trade Analysis with AI Signals

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Rating: 2.6

Last Updated Time : 04 Feb 26, 02:09 am

Swing Trade Rating: 2.6

Stock Code ONESOURCE Market Cap 13,593 Cr. Current Price 1,178 ₹ High / Low 2,250 ₹
Stock P/E 74.8 Book Value 522 ₹ Dividend Yield 0.00 % ROCE 6.42 %
ROE 4.14 % Face Value 1.00 ₹ DMA 50 1,582 ₹ DMA 200 1,720 ₹
Chg in FII Hold -0.15 % Chg in DII Hold 0.32 % PAT Qtr -55.1 Cr. PAT Prev Qtr 37.1 Cr.
RSI 23.5 MACD -153 Volume 3,99,548 Avg Vol 1Wk 7,09,827
Low price 1,057 ₹ High price 2,250 ₹ PEG Ratio 2.02 Debt to equity 0.22
52w Index 10.1 % Qtr Profit Var -300 % EPS 15.2 ₹ Industry PE 29.2

📊 ONESOURCE currently shows weak technicals and deteriorating fundamentals, making it a risky candidate for swing trading. The stock is at ₹1,178, well below its 50 DMA (₹1,582) and 200 DMA (₹1,720), reflecting strong bearish sentiment. RSI at 23.5 indicates oversold conditions, but MACD at -153 confirms heavy downward momentum. With negative quarterly PAT (-₹55.1 Cr.) and high P/E (74.8 vs industry 29.2), caution is advised. Optimal entry would be near ₹1,060–₹1,080 for speculative trades. If already holding, exit near ₹1,550–₹1,600, where resistance from the 50 DMA is expected.

✅ Positive

  • Book value of ₹522 provides some valuation support.
  • EPS of ₹15.2 shows earnings potential despite recent losses.
  • ROCE (6.42%) and ROE (4.14%) are positive, though modest.
  • DII holdings increased (+0.32%), showing domestic institutional support.
  • Debt-to-equity ratio at 0.22 indicates manageable leverage.

⚠️ Limitation

  • High P/E of 74.8 compared to industry PE of 29.2 suggests overvaluation.
  • Dividend yield at 0% offers no income return.
  • Stock trading far below both 50 DMA and 200 DMA shows strong technical weakness.
  • Volume below weekly average indicates reduced participation.

📉 Company Negative News

  • Quarterly PAT turned negative (-₹55.1 Cr. vs ₹37.1 Cr. previous quarter).
  • Quarterly profit variance (-300%) highlights severe deterioration.
  • FII holdings decreased (-0.15%), showing reduced foreign investor confidence.

📈 Company Positive News

  • DII inflows (+0.32%) show confidence from domestic institutions.
  • Book value and EPS provide some fundamental support.

🏭 Industry

  • Industry PE at 29.2 is much lower than ONESOURCE’s 74.8, highlighting overvaluation.
  • Sector outlook remains competitive, requiring efficiency and profitability improvements.

🔎 Conclusion

ONESOURCE is a weak swing candidate with poor technicals and deteriorating fundamentals. Entry near ₹1,060–₹1,080 may be considered for speculative trades, but risk is high. Exit around ₹1,550–₹1,600 is advisable if already holding, as resistance is expected near the 50 DMA. Strong risk management is essential due to negative quarterly results and high valuation.

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