SARDAEN - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.7

📊 Based on the given parameters, SARDAEN shows fair potential for swing trading. The stock is trading close to its 50 DMA (514 ₹) and 200 DMA (497 ₹), indicating strong support levels. RSI at 53.7 suggests neutral momentum, while MACD at -2.63 reflects mild bearishness. The optimal entry price would be near 500–505 ₹ on dips. If already holding, consider exiting around 535–540 ₹ unless volume and momentum improve further.

✅ Positive

• 📈 Reasonable valuation with P/E (19.3) close to industry average (20.9)
• 💹 Strong ROCE (16.6%) and ROE (12.9%) indicate healthy efficiency
• 📊 EPS of 26.4 ₹ supports fundamental strength
• 📈 Low debt-to-equity ratio (0.23) ensures financial stability
• 📈 FII holdings increased (+0.31%), showing foreign investor confidence

⚠️ Limitation

• 📉 Quarterly PAT declined (240 Cr. vs 386 Cr.), showing earnings pressure
• 📉 Negative PEG ratio (-6.33) indicates poor growth relative to valuation
• 📉 DII holdings decreased (-0.94%), reflecting reduced domestic institutional support
• 📉 Current trading volume below weekly average, showing weaker participation

🚨 Company Negative News

• 📉 Profit decline in the latest quarter despite strong yearly variation
• 📉 Reduced domestic institutional interest (-0.94%)

🌟 Company Positive News

• 📈 Quarterly profit variation of 95.5% shows strong year-on-year earnings momentum
• 📈 Technical support from DMA levels (514–497 ₹) provides a cushion for traders
• 📈 Dividend yield of 0.29% offers minor income support

🏭 Industry

• 📊 Industry PE at 20.9, close to SARDAEN’s valuation, suggesting fair pricing
• 📈 Metals and energy sector remains cyclical, offering trading opportunities with momentum shifts

📌 Conclusion

SARDAEN is a fair candidate for swing trading with strong efficiency metrics and solid technical support. However, declining quarterly profits and weak momentum limit upside potential. Optimal entry is near 500–505 ₹, with exit around 535–540 ₹ if already holding. Traders should monitor volume recovery and MACD trends before committing to fresh positions.

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