SAPPHIRE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | SAPPHIRE | Market Cap | 5,245 Cr. | Current Price | 163 ₹ | High / Low | 368 ₹ |
| Book Value | 38.7 ₹ | Dividend Yield | 0.00 % | ROCE | 5.11 % | ROE | 1.50 % |
| Face Value | 2.00 ₹ | DMA 50 | 202 ₹ | DMA 200 | 254 ₹ | Chg in FII Hold | -2.09 % |
| Chg in DII Hold | 0.29 % | PAT Qtr | 0.22 Cr. | PAT Prev Qtr | -17.3 Cr. | RSI | 30.1 |
| MACD | -12.8 | Volume | 5,17,210 | Avg Vol 1Wk | 13,39,120 | Low price | 154 ₹ |
| High price | 368 ₹ | Debt to equity | 1.04 | 52w Index | 4.46 % | Qtr Profit Var | -93.6 % |
| EPS | -1.10 ₹ | Industry PE | 62.4 |
📊 SAPPHIRE trades at ₹163, far below its 50DMA (₹202) and 200DMA (₹254), showing strong bearish momentum. Technical indicators (RSI 30.1, MACD -12.8) suggest oversold conditions but no clear reversal. Fundamentals are weak with negative EPS, low ROE, and declining profits. Despite a small profit recovery this quarter, the stock remains a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹155–160 (near support zone).
🔔 Exit Strategy if Holding: Consider exiting near ₹200–205 (around 50DMA resistance) unless momentum improves significantly.
✅ Positive
- Book value of ₹38.7 provides some asset backing.
- DII holdings increased by 0.29%, showing minor domestic confidence.
- Debt-to-equity ratio of 1.04 is moderate for the sector.
- Latest quarter showed a small profit (₹0.22 Cr.) compared to a large loss in the previous quarter.
⚠️ Limitation
- Negative EPS (-₹1.10) indicates weak earnings.
- ROE at 1.50% and ROCE at 5.11% are very low.
- No dividend yield (0.00%), limiting investor support.
- Quarterly profit variation of -93.6% shows instability.
📉 Company Negative News
- Price trading well below both 50DMA and 200DMA.
- Weak technicals: RSI oversold, MACD negative.
- FII holdings decreased by 2.09%, showing reduced foreign confidence.
📈 Company Positive News
- Shift from heavy losses to a small profit in the latest quarter.
- DII confidence reflected in slight stake increase.
🏭 Industry
- Industry PE at 62.4, much higher than SAPPHIRE’s valuation, reflecting sector optimism.
- Quick-service restaurant industry in India is growing, but margins remain under pressure.
- High competition and operational costs affect profitability.
🔎 Conclusion
SAPPHIRE is technically weak and fundamentally fragile, with negative EPS and declining profits. It is a risky swing trade candidate, suitable only for aggressive traders entering near ₹155–160 with a target around ₹200–205. Risk management is critical due to poor fundamentals and weak technical signals.