SAPPHIRE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.7

📉 Swing Trade Analysis for SAPPHIRE

SAPPHIRE currently presents a weak swing trading setup due to poor earnings, extreme valuation, and lack of momentum. Here's a breakdown

⚠️ Key Weaknesses

Extreme Overvaluation: P/E of 7,703 is wildly inflated, especially compared to the industry average of 157 — likely due to negative earnings.

Negative EPS & PAT: EPS of -₹0.60 and quarterly loss of ₹3.4 Cr. (vs ₹0.22 Cr. profit prior) indicate deteriorating fundamentals.

Poor Profitability: ROE of 1.50% and ROCE of 5.11% reflect inefficient capital use.

Negative PEG (-896): Suggests poor growth relative to valuation.

Weak Volume: Current volume is below the 1-week average, showing low trader interest.

High Debt: Debt-to-equity ratio of 0.98 is concerning for a company with negative earnings.

✅ Minor Positives

Technical Support: Price is hovering near both 50 DMA (₹324) and 200 DMA (₹320), which may act as support.

MACD Slightly Positive (0.42): Indicates mild bullish crossover.

FII Interest: FII holdings increased by 1.13%, a small but positive signal.

🎯 Optimal Entry Price

Entry Zone: ₹310–₹315

Only if price stabilizes above 200 DMA and volume picks up. Otherwise, avoid entry.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹340–₹350

A short-term bounce target if sentiment improves.

Stop-Loss: ₹305

Below 200 DMA to limit downside risk.

🧠 Final Thought

SAPPHIRE is not a strong swing candidate at the moment. The technicals are neutral, but fundamentals are weak and valuation is irrational. Only consider trading if there's a clear volume surge and price holds above key moving averages.

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