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PCBL - Swing Trade Analysis with AI Signals

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Rating: 3.2

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

Swing Trade Rating: 3.2

Stock Code PCBL Market Cap 11,778 Cr. Current Price 300 ₹ High / Low 444 ₹
Stock P/E 40.3 Book Value 99.0 ₹ Dividend Yield 2.00 % ROCE 13.2 %
ROE 12.8 % Face Value 1.00 ₹ DMA 50 297 ₹ DMA 200 348 ₹
Chg in FII Hold -0.40 % Chg in DII Hold -0.57 % PAT Qtr 44.7 Cr. PAT Prev Qtr 59.6 Cr.
RSI 59.6 MACD -7.24 Volume 2,82,80,308 Avg Vol 1Wk 52,67,029
Low price 254 ₹ High price 444 ₹ PEG Ratio 24.6 Debt to equity 0.77
52w Index 23.7 % Qtr Profit Var -59.8 % EPS 7.47 ₹ Industry PE 39.1

📊 PCBL shows moderate fundamentals with weak earnings momentum, making it a cautious candidate for swing trading. The stock is currently at ₹300, slightly above its 50 DMA (₹297) but below its 200 DMA (₹348), reflecting mixed sentiment. RSI at 59.6 is moderately strong, but MACD at -7.24 indicates bearish momentum. With declining quarterly profits and high PEG ratio (24.6), caution is advised. Optimal entry would be in the ₹285–₹295 range. If already holding, exit near ₹340–₹350, where resistance from the 200 DMA is expected.

✅ Positive

  • ROCE (13.2%) and ROE (12.8%) show decent capital efficiency.
  • Dividend yield of 2.00% provides steady returns.
  • EPS of ₹7.47 supports valuation stability.
  • Strong trading volume ensures liquidity for swing trades.

⚠️ Limitation

  • High P/E of 40.3 compared to industry PE of 39.1 suggests limited valuation comfort.
  • PEG ratio of 24.6 indicates poor growth relative to valuation.
  • Debt-to-equity ratio at 0.77 is relatively high, adding financial risk.
  • Stock trading below 200 DMA shows medium-term weakness.

📉 Company Negative News

  • Quarterly PAT declined from ₹59.6 Cr. to ₹44.7 Cr. (-59.8% variance).
  • FII holdings decreased (-0.40%) and DII holdings decreased (-0.57%).
  • MACD negative (-7.24), confirming bearish momentum.

📈 Company Positive News

  • Dividend yield of 2% adds investor appeal.
  • EPS of ₹7.47 provides earnings support despite profit decline.
  • Strong liquidity with high trading volume.

🏭 Industry

  • Industry PE at 39.1 is close to PCBL’s 40.3, suggesting fair valuation.
  • Chemicals and carbon black sector demand remains cyclical but supported by industrial growth.

🔎 Conclusion

PCBL is a moderate swing candidate with decent fundamentals but weak earnings momentum. Entry near ₹285–₹295 offers margin of safety. Exit around ₹340–₹350 is advisable if already holding, as resistance is expected near the 200 DMA. Risk management is essential due to declining profits and high PEG ratio.

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