SAPPHIRE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | SAPPHIRE | Market Cap | 6,243 Cr. | Current Price | 194 ₹ | High / Low | 368 ₹ |
| Book Value | 38.3 ₹ | Dividend Yield | 0.00 % | ROCE | 2.98 % | ROE | -2.01 % |
| Face Value | 2.00 ₹ | DMA 50 | 183 ₹ | DMA 200 | 235 ₹ | Chg in FII Hold | -0.24 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -4.55 Cr. | PAT Prev Qtr | 0.22 Cr. | RSI | 59.7 |
| MACD | 5.27 | Volume | 20,72,654 | Avg Vol 1Wk | 1,39,87,034 | Low price | 140 ₹ |
| High price | 368 ₹ | Debt to equity | 1.08 | 52w Index | 23.6 % | Qtr Profit Var | -2,168 % |
| EPS | -1.51 ₹ | Industry PE | 67.8 |
📊 SAPPHIRE shows weak fundamentals and risky technicals for swing trading. The RSI at 59.7 suggests the stock is nearing overbought levels, while the MACD is positive (5.27), indicating short-term bullishness. The current price (194 ₹) is above the 50 DMA (183 ₹) but below the 200 DMA (235 ₹), reflecting short-term strength but longer-term weakness. Profitability is poor with ROCE at 2.98% and ROE at -2.01%, while PAT turned negative (-4.55 Cr vs 0.22 Cr). Valuation is unattractive given negative EPS (-1.51 ₹) compared to industry PE of 67.8. Debt-to-equity ratio of 1.08 adds further risk.
💡 Optimal Entry Price: Around 180–185 ₹, near the 50 DMA support zone.
📈 Exit Strategy: If already holding, consider exiting near 200–205 ₹, unless momentum improves significantly.
Positive
- Strong 52-week performance (+23.6%).
- MACD positive (5.27) indicates short-term bullishness.
- Price above 50 DMA shows near-term support.
Limitation
- Negative EPS (-1.51 ₹) reflects poor earnings.
- Low ROCE (2.98%) and negative ROE (-2.01%) show weak profitability.
- Debt-to-equity ratio of 1.08 increases financial risk.
- Trading volume (20.7 lakh) is far below 1-week average (139.8 lakh), showing reduced participation.
Company Negative News
- PAT turned negative (-4.55 Cr vs 0.22 Cr), highlighting earnings pressure.
- Quarterly profit variation (-2,168%) shows severe decline.
- Decline in FII holdings (-0.24%) and DII holdings (-0.05%).
Company Positive News
- Stock price has rebounded from 52-week low (140 ₹).
- Short-term technicals show mild bullishness (MACD positive).
Industry
- Industry PE is 67.8, but SAPPHIRE’s negative EPS makes valuation unattractive.
- Consumer services sector remains competitive, with profitability challenges.
Conclusion
⚖️ SAPPHIRE is a weak candidate for swing trading due to poor fundamentals, negative earnings, and high debt. Entry near 180–185 ₹ may provide limited rebound potential, but upside is capped around 200–205 ₹. Risk management is crucial, as fundamentals do not support sustained momentum.