SIGNATURE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.2
| Stock Code | SIGNATURE | Market Cap | 12,397 Cr. | Current Price | 880 ₹ | High / Low | 1,340 ₹ |
| Stock P/E | 492 | Book Value | 66.1 ₹ | Dividend Yield | 0.00 % | ROCE | 9.40 % |
| ROE | 6.69 % | Face Value | 1.00 ₹ | DMA 50 | 997 ₹ | DMA 200 | 1,101 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | -0.35 % | PAT Qtr | -13.5 Cr. | PAT Prev Qtr | -26.5 Cr. |
| RSI | 35.6 | MACD | -51.2 | Volume | 13,21,117 | Avg Vol 1Wk | 15,15,140 |
| Low price | 774 ₹ | High price | 1,340 ₹ | PEG Ratio | 11.7 | Debt to equity | 2.31 |
| 52w Index | 18.7 % | Qtr Profit Var | -149 % | EPS | 1.79 ₹ | Industry PE | 31.6 |
📊 SIGNATURE shows weak potential for swing trading. The current price (880 ₹) is below both the 50 DMA (997 ₹) and 200 DMA (1,101 ₹), indicating bearish momentum. RSI at 35.6 suggests the stock is approaching oversold territory, while MACD (-51.2) confirms strong negative momentum. Fundamentals are poor with extremely high P/E (492 vs industry PE of 31.6), negative quarterly PAT (-13.5 Cr.), and weak ROE (6.69%). High debt-to-equity (2.31) adds financial risk, while institutional sentiment is negative with both FII (-0.46%) and DII (-0.35%) reducing holdings.
💡 Optimal Entry Price: Around 770–800 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 950–970 ₹ (short-term resistance) or if RSI rises above 50 with improving momentum.
✅ Positive
- Book value of 66.1 ₹ provides a valuation floor.
- ROCE of 9.40% shows moderate operational efficiency.
- Quarterly PAT improved slightly from -26.5 Cr. to -13.5 Cr., though still negative.
⚠️ Limitation
- Extremely high P/E of 492 compared to industry PE of 31.6.
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- Dividend yield is 0%, limiting investor appeal.
- High debt-to-equity ratio of 2.31 raises financial risk.
📉 Company Negative News
- Quarterly losses continue despite slight improvement.
- Institutional investors reduced holdings (FII -0.46%, DII -0.35%).
- Profit variation (-149%) highlights instability.
📈 Company Positive News
- Sequential improvement in PAT, though still negative.
- Strong trading volumes indicate active participation.
🏭 Industry
- Industry PE at 31.6 vs SIGNATURE’s 492 highlights extreme overvaluation.
- Sector outlook remains competitive, requiring profitability improvements.
🔎 Conclusion
SIGNATURE is not an attractive swing trade candidate due to weak fundamentals, high debt, and bearish technical indicators. Entry near 770–800 ₹ may provide limited rebound opportunities, with exit targets around 950–970 ₹. Best suited only for high-risk traders looking for short-term oversold bounces rather than sustained momentum.