RAMCOCEM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.1

📊 Analysis Summary

RAMCOCEM (The Ramco Cements) is currently trading near its 52-week high, with strong short-term momentum but weak fundamentals and signs of overvaluation. It may offer a momentum-based swing trade, but the risk of a pullback is high.

✅ Positive Indicators

MACD: +33.6

Strong bullish momentum — confirms recent uptrend.

RSI: 66.4

Approaching overbought territory, but still within tradable range.

Volume Above Average

Indicates active participation and interest.

DMA 50 & 200 Supportive

Price is well above both moving averages (₹1,082 & ₹972), confirming bullish trend.

FII Holding ↑ 1.14%

Institutional buying adds confidence.

PAT Growth (₹4.79 Cr. → ₹19.8 Cr.)

Recent quarter shows strong recovery, though sustainability is questionable.

52W Index: 98.6%

Near yearly high — strong momentum.

⚠️ Cautionary Signals

P/E: 279 vs Industry PE: 51.1

Extremely overvalued — not sustainable for long-term holding.

PEG Ratio: -5.42

Indicates poor earnings growth relative to valuation.

ROE & ROCE: Very Low (1.38% & 4.77%)

Weak profitability metrics.

Dividend Yield: 0.17%

Minimal income generation.

DII Holding ↓ 2.29%

Domestic institutions are exiting.

Qtr Profit Var: -84.6%

Despite recent PAT improvement, volatility in earnings is high.

🎯 Optimal Entry Price

Entry Zone: ₹1,140–₹1,160

Look for a minor dip or consolidation before entering. Avoid chasing near 52-week high.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,220–₹1,250

Short-term resistance zone. Consider booking profits here.

Stop Loss: ₹1,110

Below DMA 50 and recent support.

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