SKFINDIA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.0

📊 Based on the given parameters, SKFINDIA shows moderate potential for swing trading. The company has strong fundamentals with high ROCE (28.8%) and ROE (21.4%), supported by a debt-free balance sheet. Valuation is reasonable (P/E 21.5 vs industry 49.9), and EPS (109 ₹) is solid. However, technical indicators are weak — RSI (21.7) indicates oversold conditions, MACD (-72.4) shows strong bearish momentum, and the stock is trading below both DMA 50 and DMA 200. Low trading volumes further reduce liquidity. Short-term opportunities may exist if support levels hold, but caution is advised.

💡 Optimal Entry Price: Around 1,680–1,700 ₹ (near support zone and oversold RSI).

🚪 Exit Strategy: If already holding, consider exiting near 1,950–2,000 ₹ resistance or on breakdown below 1,680 ₹.

✅ Positive

• 📈 Strong ROCE (28.8%) and ROE (21.4%)
• 📊 EPS at 109 ₹ supports valuation
• 📉 Debt-free balance sheet (Debt-to-equity 0.00)
• 💰 Dividend yield of 0.80%, moderate investor return

⚠️ Limitation

• 📉 RSI at 21.7, oversold but bearish
• 📊 MACD negative (-72.4), weak momentum
• 📉 Quarterly profit variation negative (-2.04%)
• 📊 Trading volumes below average (20,963 vs 51,800)

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.57%)
• 📊 PAT dropped (41.3 Cr vs 46.7 Cr)

🌟 Company Positive News

• 📈 DII holdings increased (+0.40%)
• 📊 Valuation attractive compared to industry PE (21.5 vs 49.9)

🏭 Industry

• 📊 Industry PE at 49.9, much higher than SKFINDIA’s valuation
• 📈 Industrial bearings and engineering sector benefiting from manufacturing growth and infrastructure demand

📌 Conclusion

SKFINDIA is a moderately attractive swing trade candidate with strong fundamentals and undervaluation relative to industry peers. Entry near 1,680–1,700 ₹ offers a favorable risk-reward setup, while exits should be targeted near 1,950–2,000 ₹. Traders should remain cautious due to weak technical signals, low liquidity, and declining profits, using strict stop-loss management.

I can also prepare a comparison of SKFINDIA with another engineering sector peer to highlight relative swing trade opportunities.