ROUTE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📊 Swing Trade Analysis: Route Mobile Ltd (ROUTE)

Route Mobile shows a technically weak but fundamentally sound setup for swing trading. While the company has strong financial health and is debt-free, current price action and momentum indicators suggest caution. It may appeal to traders looking for a bounce near support, but confirmation is essential before entry.

✅ Positives

Strong Fundamentals

ROCE: 16.3% and ROE: 12.4% → Efficient capital usage.

EPS: ₹21.2 and PAT Qtr: ₹30.4 Cr. → Stable earnings.

PEG Ratio: 0.52 → Reasonably valued for its growth.

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

Dividend Yield: 1.25% → Decent income potential.

Valuation Context

P/E: 35.9 vs Industry PE: 18.1 → Slightly premium, but justified by growth.

Price Near Support

Current price ₹879 is just below DMA50 (₹897) and well below DMA200 (₹1,059), suggesting potential for a technical rebound.

⚠️ Weaknesses

Technical Indicators

MACD: -7.56 → Bearish crossover.

RSI: 50.1 → Neutral zone, lacking momentum.

Price below both DMA levels → Weak short-term trend.

Volume Decline

Current volume (1.00L) < 1-week average (1.31L) → Waning interest.

Institutional Sentiment

FII Holding ↓ 0.85%, DII Holding ↓ 0.26% → Mild pullback from major investors.

Profit Contraction

PAT dropped from ₹46.7 Cr. to ₹30.4 Cr. → Sequential decline.

🎯 Optimal Entry Price

Buy Zone: ₹860–₹875

Near recent support and below DMA50, offering a safer entry with limited downside.

🚪 Exit Strategy (If Holding)

Target Exit: ₹940–₹960

Near short-term resistance and swing potential.

Stop Loss: ₹840

Below recent low to manage downside risk.

This setup suits technically cautious swing traders who wait for MACD reversal or RSI uptick before entering. Let me know if you'd like help tracking this setup or setting alerts.

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