SCHAEFFLER - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.3

📊 Analysis Summary

SCHAEFFLER offers a strong technical and fundamental setup for swing trading. With excellent profitability, near-term support, and positive momentum indicators, it’s well-positioned for a short-term upside move. While valuation is rich, the quality of earnings and trend support justify a swing entry.

✅ Strengths

MACD Positive (20.3): Strong bullish momentum signal.

RSI at 45.4: Near neutral — potential for upward move without being overbought.

Trading Near 50 DMA (₹4,027): Current price ₹4,047 is just above — good technical support.

Above 200 DMA (₹3,726): Confirms long-term bullish trend.

ROCE (25.0%) & ROE (18.5%): Excellent profitability metrics.

EPS (₹64.8): Strong earnings base.

Low Debt-to-Equity (0.01): Virtually debt-free — very low financial risk.

PAT Growth: ₹287 Cr. vs ₹252 Cr. — healthy quarterly improvement.

Volume Stable: In line with 1-week average — consistent participation.

⚠️ Weaknesses

High P/E (62.5 vs Industry 31.2): Valuation is stretched — momentum must sustain.

RSI Below 50: Not yet in bullish territory — watch for confirmation.

Minimal Institutional Activity: FII (+0.08%) and DII (-0.06%) changes are negligible.

No PEG Ratio Provided: Limits clarity on valuation vs growth.

📈 Optimal Entry Price

Buy Zone: ₹4,020–₹4,040 Near 50 DMA and current price — ideal for low-risk entry with trend support.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹4,300–₹4,350 Near recent highs and psychological resistance.

Stop Loss: ₹3,950 Below 50 DMA — exit if trend weakens.

🧠 Final Thoughts

SCHAEFFLER is a high-quality swing trade candidate with strong fundamentals and technical alignment. Ideal for traders seeking a low-risk, trend-following setup with potential for short-term gains. Watch for RSI to cross 50 and volume to expand for confirmation.

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