RAMCOCEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.4
| Stock Code | RAMCOCEM | Market Cap | 22,340 Cr. | Current Price | 946 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 118 | Book Value | 322 ₹ | Dividend Yield | 0.21 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 1,069 ₹ | DMA 200 | 1,045 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.33 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 25.9 | MACD | -42.0 | Volume | 84,693 | Avg Vol 1Wk | 1,78,264 |
| Low price | 841 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.37 | Debt to equity | 0.62 |
| 52w Index | 28.1 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 27.0 |
📊 RAMCOCEM currently shows weak potential for swing trading. The fundamentals are stretched with a very high P/E (118), low ROE (1.56%), and declining profitability (PAT dropped from 74.3 Cr. to 5.24 Cr.). Technical indicators are bearish: RSI at 25.9 indicates oversold conditions, MACD (-42.0) signals strong downward momentum, and the current price (946 ₹) is below both the 50 DMA (1,069 ₹) and 200 DMA (1,045 ₹). This suggests the stock is in a short-term downtrend despite long-term sector strength.
✅ Optimal Entry Price: Around 930–950 ₹ (near support levels).
🚪 Exit Strategy: If already holding, consider exiting near 1,040–1,060 ₹ (200 DMA resistance) unless strong reversal with volume occurs.
🌟 Positive
- EPS of 24.5 ₹ indicates profitability despite weak margins.
- Book value of 322 ₹ provides downside cushion.
- Debt-to-equity ratio of 0.62 is manageable compared to industry peers.
⚠️ Limitation
- Extremely high P/E (118) makes the stock expensive relative to earnings.
- Low ROCE (4.83%) and ROE (1.56%) reflect poor efficiency.
- Stock trades below both 50 DMA and 200 DMA, signaling bearish trend.
- Dividend yield is very low at 0.21%, unattractive for income investors.
📰 Company Negative News
- Quarterly PAT dropped sharply from 74.3 Cr. to 5.24 Cr.
- Institutional confidence weakened with FII holdings down -0.17% and DII holdings down -0.33%.
- Quarterly profit variation is negative (-37.2%).
📈 Company Positive News
- EPS remains positive, showing the company is still profitable.
- Strong book value supports long-term stability.
🏭 Industry
- Industry PE is 27.0, much lower than RAMCOCEM’s 118, indicating overvaluation compared to peers.
- Cement sector demand remains steady, but margins are under pressure due to rising input costs.
🔎 Conclusion
RAMCOCEM is a weak candidate for swing trading due to poor technicals and stretched valuation. Short-term traders may attempt entries near 930–950 ₹ with strict stop-losses, targeting 1,040–1,060 ₹. Risk remains high, and sustained recovery depends on improved profitability and stronger momentum indicators.