SARDAEN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | SARDAEN | Market Cap | 18,372 Cr. | Current Price | 521 ₹ | High / Low | 640 ₹ |
| Stock P/E | 19.8 | Book Value | 181 ₹ | Dividend Yield | 0.29 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 499 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.06 % | PAT Qtr | 240 Cr. | PAT Prev Qtr | 386 Cr. |
| RSI | 61.0 | MACD | -0.98 | Volume | 6,17,952 | Avg Vol 1Wk | 3,38,367 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -6.48 | Debt to equity | 0.23 |
| 52w Index | 51.1 % | Qtr Profit Var | 95.5 % | EPS | 26.4 ₹ | Industry PE | 21.6 |
📊 SARDAEN shows moderate potential for swing trading. The current price (521 ₹) is above both the 50 DMA (499 ₹) and 200 DMA (497 ₹), indicating short-term strength. RSI at 61.0 suggests the stock is approaching overbought territory, while MACD (-0.98) reflects mild bearish divergence. Fundamentals are decent with P/E of 19.8 close to industry PE of 21.6, strong ROCE (16.6%) and ROE (12.9%), and low debt-to-equity (0.23). However, quarterly PAT declined from 386 Cr. to 240 Cr., raising caution despite strong EPS (26.4 ₹).
💡 Optimal Entry Price: Around 500–510 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 580–600 ₹ (resistance zone) or if RSI crosses 65 with weakening momentum.
✅ Positive
- Strong ROCE (16.6%) and ROE (12.9%) indicate efficient capital use.
- EPS of 26.4 ₹ supports earnings visibility.
- Debt-to-equity ratio of 0.23 shows low leverage risk.
- Stock trading above both 50 DMA and 200 DMA reflects momentum strength.
⚠️ Limitation
- Quarterly PAT declined from 386 Cr. to 240 Cr.
- MACD remains negative, signaling weak short-term momentum.
- Dividend yield of 0.29% is low, limiting passive returns.
- FII holdings decreased (-0.60%), showing reduced foreign investor interest.
📉 Company Negative News
- Sequential decline in quarterly profits raises caution.
- Negative PEG ratio (-6.48) suggests valuation concerns relative to growth.
📈 Company Positive News
- Strong EPS and efficiency ratios support fundamentals.
- DII holdings increased slightly (+0.06%), showing domestic support.
- Stock price consolidation above DMA levels indicates resilience.
🏭 Industry
- Industry PE at 21.6 vs SARDAEN’s 19.8 shows fair valuation.
- Steel and energy sector remains cyclical but supported by infrastructure demand.
🔎 Conclusion
SARDAEN is a moderately attractive swing trade candidate. Entry near 500–510 ₹ offers a favorable risk-reward setup, with exit targets around 580–600 ₹. Strong fundamentals and low debt support stability, but declining profits and weak technical momentum suggest cautious trading. Best suited for traders monitoring resistance levels and momentum closely.