SAPPHIRE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.3

📊 Analysis Summary

SAPPHIRE currently presents a weak swing trade setup, burdened by poor earnings, extreme valuation, and declining profitability. While there’s minor technical support, the overall risk outweighs potential short-term gains.

⚠️ Key Weaknesses

Extremely High P/E (603 vs Industry 189): Indicates severe overvaluation.

Negative PAT Growth: From ₹4.75 Cr. to -₹1.74 Cr. — sharp earnings deterioration.

ROE (1.85%) & ROCE (5.76%): Weak return metrics.

PEG Ratio (-33.6): Negative growth outlook.

Volume Drop: Current volume (4.06 lakh) far below 1-week average (17.6 lakh) — lack of momentum.

Trading Below 50 DMA (₹328): Current price ₹326 is slightly below short-term trend line.

Debt-to-Equity (0.92): High leverage adds financial risk.

Quarterly Profit Variation (-121%): Highly volatile earnings.

✅ Minor Positives

MACD Positive (2.21): Early bullish signal — but needs confirmation.

RSI at 44.9: Near oversold territory — potential for technical bounce.

FII Buying (+1.13%): Some institutional interest.

Above 200 DMA (₹320): Long-term trend still intact.

📈 Optimal Entry Price

Buy Zone: ₹315–₹320 Near 200 DMA support — only for speculative traders seeking a bounce.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹340–₹350 Short-term resistance zone and near 50 DMA.

Stop Loss: ₹310 Below 200 DMA — exit if trend breaks.

🧠 Final Thoughts

SAPPHIRE is not a strong swing trade candidate due to poor fundamentals and weak earnings visibility. While a short-term technical bounce is possible, the setup is speculative and high-risk. Best avoided unless you're trading on momentum with strict risk controls.

Would you like swing trade ideas in the QSR or retail sector with stronger earnings and volume trends?

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