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SHREECEM - Swing Trade Analysis with AI Signals

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Rating: 3.6

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

📊 Swing Trade Rating: 3.6

Stock Code SHREECEM Market Cap 89,406 Cr. Current Price 24,740 ₹ High / Low 32,508 ₹
Stock P/E 51.7 Book Value 6,078 ₹ Dividend Yield 0.44 % ROCE 7.17 %
ROE 5.69 % Face Value 10.0 ₹ DMA 50 24,918 ₹ DMA 200 26,670 ₹
Chg in FII Hold -1.13 % Chg in DII Hold 1.20 % PAT Qtr 279 Cr. PAT Prev Qtr 277 Cr.
RSI 50.6 MACD 97.7 Volume 13,061 Avg Vol 1Wk 22,743
Low price 22,550 ₹ High price 32,508 ₹ PEG Ratio -2.51 Debt to equity 0.09
52w Index 22.0 % Qtr Profit Var 21.4 % EPS 480 ₹ Industry PE 30.5

Analysis: SHREECEM is trading at ₹24,740, slightly below its 50 DMA (₹24,918) and well below its 200 DMA (₹26,670), indicating weakness in medium-term trend. RSI at 50.6 suggests neutral momentum, while MACD at 97.7 shows mild bullishness. Fundamentals are mixed: strong EPS (₹480) but low ROCE (7.17%) and ROE (5.69%). Valuation is expensive (P/E 51.7 vs Industry PE 30.5), and PEG ratio (-2.51) signals poor growth prospects. Institutional activity shows DII support (+1.20%) but FII reduction (-1.13%). Overall, the stock is stable but not strongly attractive for swing trading due to weak returns and stretched valuation.

Optimal Entry Price: ₹24,200–₹24,500, closer to support levels.

Exit Strategy: If already holding, consider exiting near ₹25,500–₹26,000 resistance, or cut losses if price falls below ₹24,000.

✅ Positive

  • Strong EPS (₹480) indicates solid earnings power.
  • Low debt-to-equity ratio (0.09) ensures financial stability.
  • DII holdings increased (+1.20%), showing domestic institutional confidence.

⚠️ Limitation

  • ROCE (7.17%) and ROE (5.69%) are weak compared to peers.
  • Valuation is expensive with P/E 51.7 vs Industry PE 30.5.
  • Trading volume below weekly average, showing weaker participation.

📉 Company Negative News

  • FII holdings decreased (-1.13%), showing reduced foreign investor interest.
  • Stock trading at only 22% of its 52-week range, far from highs.

📈 Company Positive News

  • Quarterly PAT improved slightly (₹277 Cr. to ₹279 Cr.).
  • Dividend yield at 0.44% provides steady income.

🏭 Industry

  • Industry PE at 30.5, much lower than SHREECEM’s PE (51.7), showing premium valuation.
  • Sector outlook remains stable, supporting medium-term swing opportunities.

🔎 Conclusion

SHREECEM is a cautious swing trade candidate with neutral technicals and expensive valuation. Entry near ₹24,200–₹24,500 offers a safer margin, while exit should be targeted around ₹25,500–₹26,000 resistance. Weak ROCE/ROE and reduced foreign interest warrant caution, but strong EPS and domestic institutional support provide some stability for short-term trades.

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