RAMCOCEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | RAMCOCEM | Market Cap | 27,445 Cr. | Current Price | 1,160 ₹ | High / Low | 1,209 ₹ |
| Stock P/E | 142 | Book Value | 322 ₹ | Dividend Yield | 0.17 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 1,069 ₹ | DMA 200 | 1,031 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.33 % | PAT Qtr | 74.3 Cr. | PAT Prev Qtr | 86.0 Cr. |
| RSI | 67.4 | MACD | 18.5 | Volume | 1,36,651 | Avg Vol 1Wk | 4,30,602 |
| Low price | 788 ₹ | High price | 1,209 ₹ | PEG Ratio | -2.87 | Debt to equity | 0.62 |
| 52w Index | 88.3 % | Qtr Profit Var | 190 % | EPS | 21.9 ₹ | Industry PE | 30.8 |
📊 RAMCOCEM shows strong recent profit growth and trades close to its 52-week high, supported by positive momentum indicators. However, extremely high P/E, weak ROCE/ROE, and declining institutional interest make it a risky candidate for swing trading. It is suitable for short-term momentum plays but not for long-term holding.
✅ Optimal Entry Price: Around 1,120–1,130 ₹ (near support above 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 1,190–1,200 ₹ (resistance zone close to 52-week high of 1,209 ₹).
Positive
- Quarterly profit variation of 190% shows strong turnaround.
- EPS of 21.9 ₹ indicates earnings recovery.
- Stock trading above both 50 DMA (1,069 ₹) and 200 DMA (1,031 ₹), showing technical strength.
- MACD positive (18.5) signals bullish momentum.
- RSI at 67.4 reflects strong buying interest.
Limitation
- Extremely high P/E (142) compared to industry PE (30.8), suggesting overvaluation.
- Weak ROCE (4.83%) and ROE (1.56%) highlight poor efficiency.
- Dividend yield of 0.17% offers minimal investor return.
- Debt-to-equity ratio of 0.62 indicates moderate leverage risk.
- Trading volume lower than weekly average, showing reduced participation.
Company Negative News
- Decline in both FII (-0.17%) and DII (-0.33%) holdings shows reduced institutional confidence.
- Quarterly PAT declined from 86 Cr to 74.3 Cr, showing inconsistency.
Company Positive News
- Strong quarterly profit growth compared to previous year.
- Stock price has rallied close to 52-week high, reflecting market optimism.
Industry
- Industry PE at 30.8 is much lower, highlighting RAMCOCEM’s premium valuation.
- Cement sector benefits from infrastructure demand but faces margin pressures.
Conclusion
⚖️ RAMCOCEM offers short-term swing trading potential with entry near 1,120–1,130 ₹ and exit near 1,190–1,200 ₹. While momentum is positive, valuation is stretched and fundamentals are weak. Traders should exercise caution and treat this as a momentum-driven opportunity rather than a fundamentally strong investment.