SAPPHIRE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 2.8

Sapphire Foods shows weak technical and fundamental signals for swing trading. Entry near ₹260–265 may offer limited upside, while exit should be considered near ₹295–305 if already holding.

🔷 Positive

• 📉 RSI at 43.9: Near oversold zone, potential for short-term bounce
• 📈 Sri Lanka Operations: Posted 23% YoY revenue growth, driven by strong SSSG and store expansion

  Moneycontrol

• 📊 Buy Rating: Motilal Oswal maintains a ₹350 target, citing long-term recovery potential

  Moneycontrol

⚠️ Limitation

• 📉 MACD Negative: -4.16 indicates bearish momentum
• 📉 Below DMA Levels: Price is under both 50 DMA (₹300) and 200 DMA (₹313)
• 📉 Low ROCE & ROE: ROCE at 5.11% and ROE at 1.50% reflect poor capital efficiency
• 📉 High Leverage: Debt-to-equity ratio of 1.04 raises financial risk
• 📉 Volume Weakness: Current volume (2.38L) far below 1-week average (15.91L)

🚫 Company Negative News

• 📉 Qtr Loss Deepened: PAT dropped from ₹-3.4 Cr to ₹-17.3 Cr QoQ
• 📉 Pizza Hut Struggles: SSSG declined 8% YoY; expansion halted due to poor unit-level returns

  NDTV Profit

• 📉 FII & DII Selling: Institutional holdings declined by 0.24% and 0.61% respectively

✅ Company Positive News

• 📈 KFC Sales Growth: Up 7% YoY despite flat SSSG; store count increased 10%

  Moneycontrol

• 📺 PH Tamil Nadu: Double-digit growth backed by mass media advertising

  Moneycontrol

🏭 Industry

• 🍔 QSR Sector Outlook: Mixed; KFC shows resilience while Pizza Hut faces headwinds
• 📉 High Industry PE: 149 indicates sector-wide overvaluation

🧾 Conclusion

Sapphire Foods is not an ideal swing trade candidate currently due to weak technicals, deepening losses, and poor volume. While KFC and Sri Lanka operations show promise, Pizza Hut’s performance and halted expansion weigh heavily. Entry near ₹260–265 may offer a short-term bounce, but exit near ₹295–305 is advisable if already holding.

Sources

NDTV Profit

+1

I can chart Sapphire’s price action with support/resistance zones to help visualize entry and exit levels.