RAMCOCEM - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.2

📊 RAMCOCEM is currently trading at ₹1,048, slightly above both its 50 DMA (₹1,029) and 200 DMA (₹1,012), indicating mild bullish momentum. RSI at 63.3 suggests the stock is approaching overbought territory, while MACD remains positive at 9.93. The optimal entry price would be near ₹1,020–₹1,040, close to support levels. If already holding, consider exiting around ₹1,180–₹1,200, near its recent high resistance zone.

✅ Positive

• 📈 Trading above both 50 DMA and 200 DMA, confirming short-term bullish trend
• 📊 Quarterly profit variation at +190%, showing strong earnings recovery
• 📉 Moderate debt-to-equity ratio (0.62), manageable for the cement industry
• 📈 DII holding increased by 0.63%, reflecting domestic institutional confidence

⚠️ Limitation

• 📉 Extremely high P/E ratio (128) compared to industry average (33.2), indicating overvaluation
• 📊 Low ROCE (4.83%) and ROE (1.56%), showing weak efficiency
• 📉 Dividend yield at 0.19%, offering minimal shareholder return
• 📉 PEG ratio at -2.59, suggesting poor growth prospects relative to valuation

🚨 Company Negative News

• 📉 PAT declined from ₹86 Cr. to ₹74.3 Cr. in the latest quarter
• 📉 FII holding decreased by -0.28%, showing reduced foreign investor interest
• 📉 Trading volume (1,92,179) below weekly average (2,79,270), indicating weaker participation

🌟 Company Positive News

• 📊 EPS at ₹21.9, maintaining profitability despite high valuation
• 📈 Strong quarterly profit variation (+190%) highlights operational improvement

🏭 Industry

• 📊 Industry P/E at 33.2 is much lower, suggesting peers may be more attractively priced
• 🌐 Cement sector remains cyclical but benefits from infrastructure demand and housing growth

📌 Conclusion

RAMCOCEM is a cautious swing trade candidate. While technicals show short-term bullishness, fundamentals reveal overvaluation and weak efficiency. Entry is best near ₹1,020–₹1,040, while exit should be considered around ₹1,180–₹1,200. Traders should monitor RSI and volume trends closely to avoid entering at overbought levels.

Would you like me to also compare RAMCOCEM’s swing trade potential with another cement stock like Ultratech Cement for a sector-wide perspective?