RITES - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.7

📊 Swing Trade Analysis: RITES Ltd

RITES offers a moderately attractive swing trade setup, supported by strong fundamentals and technical stability. While recent earnings have softened and volume has dipped, the stock’s valuation and trend indicators suggest potential for a short-term move.

✅ Strengths

Fundamental Quality

ROCE: 20.0% and ROE: 15.1% → Solid capital efficiency.

EPS: ₹7.95 and P/E: 34.0 → Slightly premium but supported by profitability.

Debt-to-Equity: 0.00 → Debt-free balance sheet.

Dividend Yield: 2.79% → Attractive for income-seeking traders.

Technical Positioning

Current price ₹270 is above DMA50 (₹264) and DMA200 (₹267) → Mild uptrend.

MACD: 3.56 → Bullish crossover.

RSI: 57.1 → Neutral to bullish zone.

Institutional Sentiment

FII Holding ↑ 0.14% → Mild foreign investor interest.

⚠️ Weaknesses

Earnings Volatility

PAT dropped from ₹134 Cr. to ₹66.6 Cr. → -50% sequential decline.

Qtr Profit Var: +2.76% → Minimal growth.

Valuation Concerns

PEG Ratio: -4.02 → Indicates poor growth relative to valuation.

P/E: 34.0 vs Industry PE: 20.6 → Overvalued.

Volume Drop

Current volume (4.79L) < 1-week average (12.02L) → Waning interest.

DII Holding ↓ 0.02% → Slight domestic institutional pullback.

🎯 Optimal Entry Price

Buy Zone: ₹260–₹265

Near DMA50 and recent support, offering a lower-risk entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹285–₹295

Based on swing potential and short-term resistance.

Stop Loss: ₹255

Below DMA200 to manage downside risk.

This setup suits technically disciplined swing traders who can monitor momentum indicators and exit on strength. Let me know if you'd like help tracking MACD or RSI signals for timing your entry.

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