SOBHA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | SOBHA | Market Cap | 16,043 Cr. | Current Price | 1,504 ₹ | High / Low | 1,732 ₹ |
| Stock P/E | 69.6 | Book Value | 424 ₹ | Dividend Yield | 0.20 % | ROCE | 6.98 % |
| ROE | 3.31 % | Face Value | 10.0 ₹ | DMA 50 | 1,478 ₹ | DMA 200 | 1,492 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | -0.26 % | PAT Qtr | 30.7 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 54.8 | MACD | -11.9 | Volume | 97,278 | Avg Vol 1Wk | 1,30,692 |
| Low price | 1,075 ₹ | High price | 1,732 ₹ | PEG Ratio | -8.82 | Debt to equity | 0.23 |
| 52w Index | 65.2 % | Qtr Profit Var | 11.4 % | EPS | 21.6 ₹ | Industry PE | 31.6 |
📊 SOBHA shows moderate potential for swing trading. The current price (1,504 ₹) is slightly above both the 50 DMA (1,478 ₹) and 200 DMA (1,492 ₹), indicating consolidation. RSI at 54.8 suggests neutral momentum, while MACD (-11.9) reflects short-term weakness. Fundamentals are mixed: EPS of 21.6 ₹ and low debt-to-equity (0.23) support stability, but high P/E (69.6 vs industry PE of 31.6) and weak ROE (3.31%) raise valuation concerns. Quarterly PAT dropped sharply from 104 Cr. to 30.7 Cr., showing earnings pressure. Institutional sentiment is negative with both FII (-0.15%) and DII (-0.26%) reducing holdings.
💡 Optimal Entry Price: Around 1,460–1,480 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 1,600–1,650 ₹ (short-term resistance) or if RSI crosses 65 with weakening momentum.
✅ Positive
- EPS of 21.6 ₹ provides earnings visibility.
- Debt-to-equity ratio of 0.23 shows low leverage risk.
- Stock trading above DMA levels indicates resilience.
- Book value of 424 ₹ offers valuation support.
⚠️ Limitation
- High P/E of 69.6 compared to industry PE of 31.6 suggests overvaluation.
- ROCE (6.98%) and ROE (3.31%) are weak, showing limited efficiency.
- Dividend yield of 0.20% is modest.
- Institutional holdings declined (FII -0.15%, DII -0.26%).
📉 Company Negative News
- Quarterly PAT fell sharply from 104 Cr. to 30.7 Cr.
- Negative PEG ratio (-8.82) highlights valuation concerns relative to growth.
📈 Company Positive News
- Stock price consolidation above DMA levels shows technical support.
- Low debt-to-equity ratio enhances financial stability.
🏭 Industry
- Industry PE at 31.6 vs SOBHA’s 69.6 highlights premium valuation.
- Real estate sector remains cyclical but benefits from housing demand and infrastructure growth.
🔎 Conclusion
SOBHA is a moderately attractive swing trade candidate. Entry near 1,460–1,480 ₹ offers a favorable risk-reward setup, with exit targets around 1,600–1,650 ₹. Strong book value and low debt support stability, but high valuations and declining profits suggest cautious trading. Suitable for short-term traders monitoring resistance levels closely.