SKFINDIA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | SKFINDIA | Market Cap | 9,252 Cr. | Current Price | 1,870 ₹ | High / Low | 2,396 ₹ |
| Stock P/E | 23.1 | Book Value | 558 ₹ | Dividend Yield | 0.77 % | ROCE | 28.8 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 1,902 ₹ | DMA 200 | 2,051 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.27 % | PAT Qtr | 41.3 Cr. | PAT Prev Qtr | 46.7 Cr. |
| RSI | 51.2 | MACD | -7.24 | Volume | 34,891 | Avg Vol 1Wk | 71,809 |
| Low price | 1,652 ₹ | High price | 2,396 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.00 |
| 52w Index | 29.3 % | Qtr Profit Var | -2.04 % | EPS | 109 ₹ | Industry PE | 49.5 |
📊 SKFINDIA shows fair potential for swing trading. The stock is trading slightly below its 50 DMA (1,902 ₹) and 200 DMA (2,051 ₹), reflecting short-term weakness. Fundamentals are strong with high ROCE (28.8%) and ROE (21.4%), supported by zero debt and solid EPS (109 ₹). Valuation is reasonable (P/E 23.1 vs industry 49.5), but technical indicators (RSI 51.2, MACD -7.24) suggest neutral-to-bearish momentum. Institutional activity is mixed, with minor FII inflows but DII outflows. Overall, SKFINDIA is a fair candidate for swing trading with cautious entry and exit levels.
✅ Optimal Entry Price: Around 1,850–1,870 ₹ (near support zone)
🚪 Exit Strategy: If already holding, consider exiting near 1,950–2,000 ₹ (close to resistance zone/200 DMA) or cut losses if price falls below 1,820 ₹.
🌟 Positive
- 📈 Strong ROCE (28.8%) and ROE (21.4%) indicate excellent efficiency
- 📊 EPS at 109 ₹ reflects solid earnings base
- 💰 Dividend yield of 0.77% provides modest income support
- 📉 Debt-to-equity ratio at 0.00 shows excellent financial stability
- 📊 Valuation attractive (P/E 23.1 vs industry 49.5)
⚠️ Limitation
- 📉 Current price below both 50 DMA and 200 DMA, showing weak technical strength
- 📉 MACD negative (-7.24) indicates bearish momentum
- 📉 Trading volume (34k) below weekly average (71k), limiting momentum
- 📉 PEG ratio at 1.82 suggests valuation is slightly expensive relative to growth
🚨 Company Negative News
- 📉 Quarterly PAT declined from 46.7 Cr. to 41.3 Cr.
- 📉 Quarterly profit variance (-2.04%) shows slight decline in profitability
- 📉 DII holdings decreased (-0.27%), showing reduced domestic institutional confidence
✅ Company Positive News
- 📈 FII holdings increased slightly (+0.03%), showing marginal foreign investor support
- 📊 RSI at 51.2 suggests neutral momentum, leaving room for recovery
🏭 Industry
- 📊 Industry PE at 49.5 highlights sector’s higher valuation compared to SKFINDIA’s discount
- 📈 Engineering and industrial sector benefits from infrastructure growth and manufacturing demand
📌 Conclusion
SKFINDIA is a fair swing trade candidate with strong fundamentals and attractive valuation but weak technical momentum. Entry near 1,850–1,870 ₹ offers a safer setup, while exits should be targeted around 1,950–2,000 ₹. Risk management is essential as profitability trends remain slightly weak despite strong efficiency and zero debt.