ROUTE - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.4

📊 Based on the given parameters, ROUTE shows moderate potential for swing trading. The stock trades at a premium valuation (P/E 32.6 vs industry 15.7), but fundamentals like ROCE (16.3%), ROE (12.4%), and EPS (18.8 ₹) provide support. Dividend yield (1.54%) adds investor appeal, and debt-free status strengthens the balance sheet. Technical indicators (RSI 58.8, MACD -1.72) suggest neutral momentum, while volumes are significantly higher than average, indicating strong trading interest. However, declining FII/DII holdings and negative quarterly profit variation (-31.4%) limit upside.

💡 Optimal Entry Price: Around 700–710 ₹ (near DMA 50 support).

🚪 Exit Strategy: If already holding, consider exiting near 760–780 ₹ resistance or on breakdown below 700 ₹.

✅ Positive

• 📈 Strong ROCE (16.3%) and ROE (12.4%)
• 📊 EPS at 18.8 ₹ supports valuation
• 💰 Dividend yield of 1.54%, attractive for investors
• 📉 Debt-free balance sheet (Debt-to-equity 0.00)
• 📈 Very high trading volumes (1,02,41,138 vs avg 27,12,014)

⚠️ Limitation

• 📉 High P/E ratio (32.6 vs industry 15.7)
• 📊 Negative quarterly profit variation (-31.4%)
• 📉 RSI at 58.8, nearing overbought zone
• 📊 MACD negative (-1.72), weak momentum

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.62%)
• 📊 Decline in DII holdings (-0.67%)

🌟 Company Positive News

• 📈 PAT growth compared to previous quarter (32.9 Cr vs 30.4 Cr)
• 📊 Debt-free structure provides financial stability

🏭 Industry

• 📊 Industry PE at 15.7, much lower than ROUTE’s valuation
• 📈 IT services and digital communication sector benefiting from enterprise demand and digital adoption

📌 Conclusion

ROUTE is a moderately attractive swing trade candidate with strong fundamentals and debt-free balance sheet, but overvaluation and weak technical signals limit immediate upside. Entry near 700–710 ₹ offers a favorable setup, while exits should be targeted near 760–780 ₹. Traders should remain cautious due to declining institutional holdings and negative profit variation, using strict stop-loss management.

I can also prepare a comparison of ROUTE with another IT services mid-cap to highlight relative swing trade opportunities.