ROUTE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | ROUTE | Market Cap | 4,047 Cr. | Current Price | 642 ₹ | High / Low | 1,328 ₹ |
| Stock P/E | 29.1 | Book Value | 205 ₹ | Dividend Yield | 1.71 % | ROCE | 16.3 % |
| ROE | 12.4 % | Face Value | 10.0 ₹ | DMA 50 | 700 ₹ | DMA 200 | 864 ₹ |
| Chg in FII Hold | -0.62 % | Chg in DII Hold | -0.67 % | PAT Qtr | 32.9 Cr. | PAT Prev Qtr | 30.4 Cr. |
| RSI | 34.2 | MACD | -11.8 | Volume | 1,34,480 | Avg Vol 1Wk | 1,21,057 |
| Low price | 636 ₹ | High price | 1,328 ₹ | PEG Ratio | 0.42 | Debt to equity | 0.00 |
| 52w Index | 0.79 % | Qtr Profit Var | -31.4 % | EPS | 18.8 ₹ | Industry PE | 13.8 |
📊 ROUTE shows weak-to-moderate potential for swing trading. The stock is trading near its 52-week low (636 ₹) with RSI at 34.2, indicating oversold conditions. However, technical indicators (MACD -11.8) suggest bearish momentum, and the price remains below both 50 DMA (700 ₹) and 200 DMA (864 ₹). Fundamentals are mixed — decent ROCE (16.3%) and ROE (12.4%) with zero debt, but valuation is stretched (P/E 29.1 vs industry 13.8) and quarterly profit variance is negative (-31.4%). Institutional investors have reduced holdings, further weakening sentiment. Overall, it is a cautious candidate for swing trading.
✅ Optimal Entry Price: Around 635–645 ₹ (near support zone)
🚪 Exit Strategy: If already holding, consider exiting near 690–700 ₹ (close to 50 DMA resistance) or cut losses if price falls below 630 ₹.
🌟 Positive
- 📈 ROCE (16.3%) and ROE (12.4%) show moderate efficiency
- 📊 EPS at 18.8 ₹ reflects earnings consistency
- 💰 Dividend yield of 1.71% provides modest income support
- 📉 Debt-to-equity ratio at 0.00 indicates strong financial stability
- 📈 Trading volume (1.34 lakh) above weekly average (1.21 lakh), showing short-term interest
⚠️ Limitation
- 📉 High P/E ratio (29.1 vs industry 13.8) indicates overvaluation
- 📉 PEG ratio at 0.42 suggests limited growth prospects
- 📉 Current price far below 50 DMA and 200 DMA, showing weak technical strength
🚨 Company Negative News
- 📉 Quarterly profit variance (-31.4%) shows declining profitability trend
- 📉 Decline in FII (-0.62%) and DII (-0.67%) holdings indicates reduced institutional confidence
- 📉 MACD negative (-11.8) signals bearish technical trend
✅ Company Positive News
- 📈 PAT improved slightly from 30.4 Cr. to 32.9 Cr. quarter-on-quarter
- 📊 RSI at 34.2 suggests stock is near oversold territory, leaving room for short-term rebound
🏭 Industry
- 📊 Industry PE at 13.8 highlights sector’s moderate valuation compared to ROUTE’s premium
- 📈 IT services and communication sector benefits from digital adoption but faces competitive pressures
📌 Conclusion
ROUTE is a weak swing trade candidate due to stretched valuations, declining profitability, and bearish technicals. Entry near 635–645 ₹ may be considered for a short-term rebound, but exits should be targeted around 690–700 ₹. Strict stop-loss discipline is essential as risks remain high despite zero debt and modest dividend yield.