SARDAEN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | SARDAEN | Market Cap | 17,963 Cr. | Current Price | 510 ₹ | High / Low | 640 ₹ |
| Stock P/E | 19.9 | Book Value | 181 ₹ | Dividend Yield | 0.29 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 518 ₹ | DMA 200 | 504 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.06 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 45.5 | MACD | 3.14 | Volume | 3,05,267 | Avg Vol 1Wk | 4,82,642 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -6.51 | Debt to equity | 0.23 |
| 52w Index | 46.5 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 19.6 |
📊 SARDAEN trades at ₹510, close to its 200DMA (₹504) and slightly below its 50DMA (₹518). Technical indicators (RSI 45.5, MACD 3.14) suggest neutral-to-slightly bullish momentum. Fundamentals are moderate with decent ROCE and ROE, low debt, but declining quarterly profits. Valuation is fair compared to industry PE. This makes SARDAEN a moderately good swing trade candidate.
💡 Optimal Entry Price: Around ₹500–510 (near 200DMA support).
🔔 Exit Strategy if Holding: Consider exiting near ₹530–540 (around 50DMA resistance) unless momentum strengthens further.
✅ Positive
- ROCE at 16.6% and ROE at 12.9% show decent profitability.
- Debt-to-equity ratio of 0.23 indicates strong financial stability.
- EPS of ₹25.7 supports earnings consistency.
- DII holdings increased slightly (+0.06%), showing domestic confidence.
⚠️ Limitation
- Quarterly PAT fell from ₹240 Cr. to ₹163 Cr. (-13.8%).
- Dividend yield is low at 0.29%.
- PEG ratio of -6.51 suggests poor growth valuation.
- FII holdings decreased by 0.60%, showing reduced foreign confidence.
📉 Company Negative News
- Decline in quarterly profits.
- Price trading below 50DMA resistance.
- Foreign institutional investors reduced stake.
📈 Company Positive News
- Strong ROCE and ROE compared to peers.
- Low debt enhances financial resilience.
- Stable EPS performance.
🏭 Industry
- Industry PE at 19.6, close to SARDAEN’s P/E of 19.9, indicating fair valuation.
- Steel and energy sector remains cyclical, tied to global demand and commodity prices.
- Domestic infrastructure growth supports long-term fundamentals.
🔎 Conclusion
SARDAEN is financially stable with decent profitability but faces declining profits and neutral technicals. It is a moderately good swing trade candidate if entered near ₹500–510 with a target around ₹530–540. Risk management is important due to profit decline and limited dividend support.