SHREECEM - Swing Trade Analysis

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

Swing Trade Rating: 2.9

📊 Analysis Summary

SHREECEM (Shree Cement) is a high-valuation, low-momentum stock with limited upside for swing trading in the short term. While fundamentals are strong and the company is financially sound, the technical setup lacks conviction, and the stock is trading near resistance levels.

✅ Strengths

Strong EPS (₹311): Indicates solid earnings base.

Low Debt-to-Equity (0.05): Extremely low leverage — financially robust.

PAT Growth: ₹574 Cr. vs ₹193 Cr. — strong quarterly rebound.

MACD Positive (178): Bullish crossover suggests potential momentum.

Above 200 DMA (₹28,819): Long-term trend remains intact.

⚠️ Weaknesses

Extremely High P/E (98.2): Valuation is stretched compared to industry average (51.1).

RSI at 43.7: Weak momentum — not in oversold or reversal zone.

Trading Below 50 DMA (₹30,616): Indicates short-term weakness.

Volume Below Average: Current volume (21,236) is lower than 1-week average (24,453) — lack of participation.

Negative PEG Ratio (-4.55): Poor growth relative to valuation.

DII Selling (-0.42%): Domestic institutions reducing stake.

Low ROE (5.29%) and ROCE (6.71%): Weak return metrics for a premium valuation.

📈 Optimal Entry Price

Wait for Dip: ₹29,500–₹29,800 Near support zone and below 50 DMA — better risk-reward entry.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹31,500–₹32,000 Near recent highs and resistance zone.

Stop Loss: ₹28,800 Below 200 DMA — exit if long-term support breaks.

🧠 Final Thoughts

SHREECEM is not an ideal swing trade candidate due to its high valuation, weak short-term momentum, and low volume. It’s better suited for long-term investors who value stability and low debt. For swing traders, consider stocks with stronger RSI, better volume, and more favorable valuation metrics.

Want help identifying cement sector stocks with better swing setups?

Edit in a page