SHREECEM - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.5

📊 Based on the given parameters, SHREECEM shows moderate potential for swing trading. The stock is trading well below its 50 DMA (27,257 ₹) and 200 DMA (28,479 ₹), reflecting weak technical momentum. RSI at 34.1 indicates oversold conditions, while MACD at -389 confirms bearish sentiment. The optimal entry price would be near 25,000–25,200 ₹ if stability is confirmed. If already holding, consider exiting around 27,000–27,200 ₹ on rebounds unless volume and momentum strengthen further.

✅ Positive

• 📈 EPS of 466 ₹ supports strong fundamental value
• 💹 Dividend yield of 0.43% provides minor income support
• 📊 Low debt-to-equity ratio (0.09) ensures financial stability
• 📈 FII holdings increased (+0.27%), showing foreign investor confidence
• 📈 Quarterly profit variation of 198% highlights strong year-on-year earnings growth

⚠️ Limitation

• 📉 High P/E ratio (54.9) compared to industry average (33.2)
• 📉 Weak ROCE (7.17%) and ROE (5.69%) indicate poor efficiency
• 📉 PEG ratio of -2.67 suggests poor growth relative to valuation
• 📉 Current price far below 52-week high (32,508 ₹), showing resistance pressure

🚨 Company Negative News

• 📉 Quarterly PAT declined sharply (277 Cr. vs 619 Cr.)
• 📉 DII holdings decreased (-0.25%), reflecting reduced domestic institutional support
• 📉 Weak technical indicators (RSI and MACD) confirm bearish sentiment

🌟 Company Positive News

• 📈 EPS strength and low debt levels support long-term fundamentals
• 📈 FII holdings increased (+0.27%), showing foreign confidence
• 📈 Year-on-year profit growth remains strong despite quarterly decline

🏭 Industry

• 📊 Industry PE at 33.2, lower than SHREECEM’s valuation, indicating premium pricing
• 📈 Cement sector remains cyclical, offering trading opportunities with demand-driven momentum shifts

📌 Conclusion

SHREECEM is a cautious candidate for swing trading. While strong EPS, low debt, and FII support provide positives, weak efficiency metrics, stretched valuations, and bearish technicals limit immediate upside potential. Optimal entry is near 25,000–25,200 ₹, with exit around 27,000–27,200 ₹ if already holding. Traders should monitor RSI recovery and MACD trends before fresh positions.

I can also prepare a comparison of SHREECEM with SCI and SCHNEIDER to highlight which one offers the safer swing trade opportunity.