SHREECEM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📉 Current Price: ₹27,645

📊 Optimal Entry Price: ₹26,800–27,200 (near recent support and RSI oversold zone)

📈 Suggested Exit (if holding): ₹29,200–29,500 (near 200 DMA resistance)

🔷 Positive

• 📈 Low Debt: Debt-to-equity ratio of 0.09 reflects strong financial discipline
• 📉 RSI at 30.3: Near oversold zone, indicating potential for technical rebound
• 📈 EPS Strength: EPS of ₹466 supports long-term valuation
• 📈 FII Buying: Foreign institutional holding increased by 0.27%

⚠️ Limitation

• 📉 MACD Negative: -409 signals bearish momentum
• 📉 Below DMA Levels: Price trading below both 50 DMA and 200 DMA
• 📉 High P/E: 59.3 vs industry average of 36.4 implies overvaluation
• 📉 Low ROCE & ROE: ROCE at 7.17% and ROE at 5.69% are below industry norms
• 📉 Weak Volume: Current volume (12.6K) far below 1-week average (30.8K)

🚫 Company Negative News

• 📉 Profit Decline: PAT dropped from ₹619 Cr to ₹277 Cr QoQ
• 📉 DII Selling: Domestic institutional holding declined by 0.25%

✅ Company Positive News

• 📈 YoY PAT Growth: Despite QoQ drop, PAT up 198% YoY
• 🏗️ Capacity Expansion: New clinker and grinding units commissioned in Rajasthan and Andhra Pradesh
• 📊 Sustainability Focus: Increased use of alternative fuels and waste heat recovery systems

🏭 Industry

• 🏢 Cement Sector Outlook: Supported by infrastructure push and housing demand
• 📉 Margin Pressure: Rising input costs and competitive pricing impacting profitability

🧾 Conclusion

SHREECEM presents a cautious swing trade opportunity with technical oversold signals and long-term EPS strength. However, weak momentum, falling profits, and valuation concerns suggest limited upside. Entry near ₹26,800–27,200 may offer a short-term bounce, while exit near ₹29,200–29,500 aligns with resistance. Monitor volume and MACD for confirmation before initiating trades.

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