SKFINDIA - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.9

📊 Swing Trade Analysis: SKF India Ltd (SKFINDIA)

SKFINDIA presents a technically strong and fundamentally solid swing trade setup. While valuation is slightly stretched and recent earnings have dipped, the stock’s momentum, low debt, and capital efficiency make it attractive for short-term tactical trading.

✅ Strengths

Technical Momentum

RSI: 56.1 → Bullish zone, with room to rise.

MACD: 46.8 → Strong positive crossover.

Price above DMA50 (₹4,697) and DMA200 (₹4,594) → Confirmed uptrend.

Fundamental Quality

ROCE: 28.8% and ROE: 21.4% → Excellent capital efficiency.

EPS: ₹106 → Strong earnings base.

Debt-to-Equity: 0.00 → Debt-free balance sheet.

Valuation Context

P/E: 45.0 vs Industry PE: 50.4 → Slightly undervalued within sector.

Book Value: ₹526 → Trading at ~9× book value, typical for high-quality industrials.

Volume Strength

Current volume (16.8K) > 1-week average → Mild uptick in interest.

⚠️ Risks

Earnings Volatility

PAT Qtr: ₹119 Cr. vs ₹203 Cr. → -25.4% decline.

PEG Ratio: 3.54 → Expensive relative to growth.

Institutional Sentiment

FII Holding ↓ 0.66% → Mild foreign investor pullback.

DII Holding ↑ 0.10% → Slight domestic accumulation.

Low Dividend Yield: 0.30% → Minimal passive income.

🎯 Optimal Entry Price

Buy Zone: ₹4,700–₹4,750

Near DMA50 and recent support, offering a safer entry with limited downside.

🚪 Exit Strategy (If Holding)

Target Exit: ₹5,100–₹5,200

Based on swing potential and resistance zone.

Stop Loss: ₹4,600

Below DMA200 to manage downside risk.

This setup suits momentum-driven swing traders who can monitor RSI and MACD for continuation signals and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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