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SCI - Swing Trade Analysis with AI Signals

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Rating: 4

Last Updated Time : 05 May 26, 04:34 pm

📊 Swing Trade Rating: 4.0

Stock Code SCI Market Cap 14,818 Cr. Current Price 319 ₹ High / Low 323 ₹
Stock P/E 13.7 Book Value 166 ₹ Dividend Yield 2.07 % ROCE 10.1 %
ROE 11.0 % Face Value 10.0 ₹ DMA 50 262 ₹ DMA 200 237 ₹
Chg in FII Hold 1.85 % Chg in DII Hold 0.08 % PAT Qtr 393 Cr. PAT Prev Qtr 176 Cr.
RSI 73.0 MACD 18.0 Volume 1,65,87,031 Avg Vol 1Wk 1,61,27,889
Low price 158 ₹ High price 323 ₹ PEG Ratio 16.3 Debt to equity 0.29
52w Index 97.4 % Qtr Profit Var 507 % EPS 23.3 ₹ Industry PE 16.2

Analysis: SCI is showing strong momentum with the current price (₹319) near its 52-week high (₹323). The stock is trading well above both 50 DMA (₹262) and 200 DMA (₹237), confirming bullish strength. RSI at 73.0 indicates overbought conditions, suggesting caution for new entries. MACD at 18.0 supports short-term upward momentum. Fundamentals are solid with P/E (13.7) below industry average (16.2), strong EPS (₹23.3), and dividend yield of 2.07%. Quarterly PAT surged to ₹393 Cr. from ₹176 Cr., showing robust earnings growth. Institutional support is visible with FII (+1.85%) and DII (+0.08%) increases.

Optimal Entry Price: ₹300–₹310, ideally after a minor pullback from overbought levels.

Exit Strategy: If already holding, consider booking profits near ₹320–₹325 resistance, or exit if price falls below ₹295.

✅ Positive

  • Strong quarterly PAT growth (+507%).
  • FII holdings increased (+1.85%), showing foreign investor confidence.
  • Dividend yield at 2.07% provides steady returns.
  • Trading above both 50 DMA and 200 DMA confirms bullish momentum.

⚠️ Limitation

  • RSI at 73.0 indicates overbought conditions, risk of short-term correction.
  • PEG ratio at 16.3 suggests expensive growth valuation.
  • ROCE (10.1%) and ROE (11.0%) are moderate compared to peers.

📉 Company Negative News

  • High PEG ratio limits attractiveness for growth investors.
  • Overbought technicals increase risk of near-term pullback.

📈 Company Positive News

  • Quarterly PAT surged from ₹176 Cr. to ₹393 Cr.
  • EPS at ₹23.3 reflects strong earnings power.
  • Institutional support from both FII and DII increases.

🏭 Industry

  • Industry PE at 16.2, slightly higher than SCI’s PE (13.7), suggesting undervaluation.
  • Sector outlook remains stable, supporting medium-term swing opportunities.

🔎 Conclusion

SCI is a strong swing trade candidate with robust earnings growth and bullish technicals. Entry is safer after a pullback near ₹300–₹310, while exit should be targeted around ₹320–₹325 resistance. Overbought RSI and high PEG ratio warrant caution, but strong institutional support and undervaluation relative to industry make it attractive for momentum-driven trades.

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