SOBHA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Current Price: ₹1,618

📊 Optimal Entry Price: ₹1,570–1,590 (near 50 DMA support)

📈 Suggested Exit (if holding): ₹1,700–1,730 (near 52-week high resistance)

🔷 Positive

• 📈 Strong Quarterly PAT Growth: PAT surged 305% QoQ from ₹45.9 Cr to ₹104 Cr
• 📊 MACD Positive: 26.8 indicates bullish momentum
• 📈 Above DMA Levels: Price trading above both 50 DMA (₹1,536) and 200 DMA (₹1,490)
• 📉 Low Debt: Debt-to-equity ratio of 0.23 reflects financial discipline
• 📈 DII Buying: Domestic institutional holding increased by 1.42%

⚠️ Limitation

• 📉 High P/E: 76.1 vs industry average of 41.3 suggests overvaluation
• 📉 Weak ROCE & ROE: ROCE at 6.98% and ROE at 3.31% are below industry norms
• 📉 Negative PEG Ratio: -9.63 implies poor earnings growth relative to valuation
• 📉 RSI at 61.7: Approaching overbought zone, limiting upside potential

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 1.68%

✅ Company Positive News

• 🏗️ Project Launches: Continued expansion in residential and commercial segments
• 📈 Sales Realization: Higher per sq ft pricing contributing to margin expansion
• 📊 Volume Surge: Current volume (2.86L) above 1-week average (2.18L)

🏭 Industry

• 🏘️ Real Estate Sector: Supported by urban housing demand and government incentives
• 📉 Valuation Risk: Sector trading at elevated multiples amid margin pressure

🧾 Conclusion

SOBHA presents a moderate swing trade opportunity with strong earnings momentum and technical support. However, valuation concerns and weak capital efficiency suggest caution. Entry near ₹1,570–1,590 is ideal, with exit near ₹1,700–1,730. Monitor RSI and volume trends for confirmation before initiating trades.

I can chart SOBHA’s price action with support and resistance zones to help you time your trade more precisely.