SARDAEN - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

SARDAEN shows strong fundamentals and recent profit growth, but weak technicals and low volume suggest waiting for a better entry near ₹520–525. If already holding, consider exiting near ₹580–600.

🔷 Positive

• 📈 Strong Profit Growth: PAT jumped to ₹386 Cr from ₹115 Cr QoQ, a 113% increase
• 📊 Healthy ROCE & ROE: ROCE at 16.6% and ROE at 12.9% reflect efficient capital use
• 📉 Low Debt: Debt-to-equity ratio of 0.26 indicates financial stability
• 📈 Above 200 DMA: Price trading above 200 DMA (₹496) supports medium-term trend
• 📈 FII Buying: Foreign institutional holding increased by 0.31%

⚠️ Limitation

• 📉 MACD Negative: -7.15 indicates bearish momentum
• 📉 Below 50 DMA: Current price is under 50 DMA (₹549), showing short-term weakness
• 📉 Low Volume: Current volume (4.4L) is less than half of 1-week average (10.1L)
• 📉 Negative PEG: -7.61 suggests valuation concerns despite earnings growth

🚫 Company Negative News

• 📉 DII Selling: Domestic institutional holding declined by 0.94%

✅ Company Positive News

• 🚀 Q1FY26 Profit Surge: Net profit more than doubled YoY to ₹386 Cr

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• 📈 Revenue Growth: Total income rose 90% YoY to ₹1,377 Cr

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• 📊 Valuation Below Industry Median: P/E of 23.2 vs industry average of 22.1 with better earnings visibility

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🏭 Industry

• 🏗️ Metals & Mining Sector: Benefiting from infrastructure demand and global steel recovery
• 📉 Volatility Risk: Sector sensitive to commodity price swings and global trade dynamics

🧾 Conclusion

SARDAEN offers a moderate swing trade opportunity with strong earnings momentum and solid fundamentals. However, weak technical indicators and low volume suggest caution. Entry near ₹520–525 is ideal, with exit near ₹580–600. Watch for MACD reversal and volume pickup before initiating new trades.

Sources

Sarda Energy Q1 Profit More Than Doubles

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Sarda Energy Financial Overview

Trendlyne

I can chart SARDAEN’s price action with support and resistance levels if you’d like a visual timing guide.