SAGILITY - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.5

📊 Based on the given parameters, SAGILITY shows moderate potential for swing trading. The stock is trading near its recent highs (57.9 ₹) with support around 49–45 ₹ (DMA 50 & DMA 200). RSI at 55.9 suggests neutral momentum, while MACD is slightly positive, indicating mild bullishness. The optimal entry price would be near 49–50 ₹ on dips. If already holding, consider exiting around 57–58 ₹ unless volume and momentum improve further.

✅ Positive

• 📈 Strong quarterly profit growth (PAT up from 96.7 Cr. to 111 Cr.)
• 💹 PEG ratio of 0.20 indicates growth potential relative to valuation
• 📊 Low debt-to-equity ratio (0.09) shows financial stability
• 📈 DII holdings increased (+0.80%), reflecting domestic institutional confidence

⚠️ Limitation

• 📉 High P/E ratio (61.0) compared to industry average (31.6)
• 📉 Weak ROCE (4.37%) and ROE (2.88%) indicate poor capital efficiency
• 📉 EPS remains low (0.85 ₹), limiting long-term valuation support
• 📉 Trading volume below weekly average, showing reduced participation

🚨 Company Negative News

• 📉 High valuation multiples despite modest profitability
• 📉 Decline in FII holdings (-0.40%) suggests foreign investor caution

🌟 Company Positive News

• 📈 Quarterly profit growth of 51.4% shows improving earnings momentum
• 📈 Strong support from domestic institutions (+0.80% DII holding)
• 📈 Stable financial structure with minimal debt

🏭 Industry

• 📊 Industry PE at 31.6, much lower than SAGILITY’s valuation, indicating premium pricing
• 📈 Sector growth opportunities exist, but efficiency metrics lag peers

📌 Conclusion

SAGILITY is a fair candidate for swing trading with improving quarterly profits and strong institutional support. However, stretched valuations and weak efficiency metrics limit upside potential. Optimal entry is near 49–50 ₹, with exit around 57–58 ₹ if already holding. Traders should monitor volume and RSI closely before committing to fresh positions.

Would you like me to also prepare a side-by-side comparison of SAGILITY and SRF to highlight which offers stronger swing trade potential?