SOLARINDS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | SOLARINDS | Market Cap | 1,22,314 Cr. | Current Price | 13,591 ₹ | High / Low | 17,820 ₹ |
| Stock P/E | 114 | Book Value | 387 ₹ | Dividend Yield | 0.07 % | ROCE | 37.3 % |
| ROE | 29.7 % | Face Value | 2.00 ₹ | DMA 50 | 13,056 ₹ | DMA 200 | 13,204 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.01 % | PAT Qtr | 329 Cr. | PAT Prev Qtr | 235 Cr. |
| RSI | 57.2 | MACD | 208 | Volume | 2,84,934 | Avg Vol 1Wk | 2,82,055 |
| Low price | 8,479 ₹ | High price | 17,820 ₹ | PEG Ratio | 2.52 | Debt to equity | 0.05 |
| 52w Index | 54.7 % | Qtr Profit Var | 61.2 % | EPS | 118 ₹ | Industry PE | 23.3 |
📊 SOLARINDS shows strong potential for swing trading. The current price (13,591 ₹) is above both the 50 DMA (13,056 ₹) and 200 DMA (13,204 ₹), reflecting bullish momentum. RSI at 57.2 suggests neutral-to-positive strength, while MACD (208) confirms strong upward momentum. Fundamentals are impressive with ROCE (37.3%) and ROE (29.7%), supported by very low debt-to-equity (0.05). Quarterly PAT improved significantly from 235 Cr. to 329 Cr. (+61.2%), highlighting earnings growth. However, the high P/E (114 vs industry PE of 23.3) and modest dividend yield (0.07%) raise valuation concerns. Institutional sentiment is mixed with FII holdings slightly down (-0.37%) and DII holdings flat (+0.01%).
💡 Optimal Entry Price: Around 13,200–13,400 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 14,800–15,000 ₹ (resistance zone) or if RSI crosses 65 with weakening momentum.
✅ Positive
- Strong ROCE (37.3%) and ROE (29.7%) highlight operational efficiency.
- EPS of 118 ₹ supports earnings visibility.
- Debt-to-equity ratio of 0.05 shows virtually no leverage risk.
- Quarterly PAT growth (+61.2%) reflects strong profitability momentum.
⚠️ Limitation
- High P/E of 114 compared to industry PE of 23.3 suggests overvaluation.
- Dividend yield of 0.07% is negligible.
- PEG ratio of 2.52 indicates expensive valuation relative to growth.
- FII holdings decreased (-0.37%), showing reduced foreign investor interest.
📉 Company Negative News
- Valuation concerns due to high P/E and PEG ratio.
- Weak institutional sentiment with declining FII holdings.
📈 Company Positive News
- Quarterly PAT improved significantly, showing strong earnings growth.
- Strong efficiency ratios (ROCE and ROE).
- Stock trading above both 50 DMA and 200 DMA reflects bullish momentum.
🏭 Industry
- Industry PE at 23.3 vs SOLARINDS’s 114 highlights premium valuation.
- Defense and explosives sector remains in growth phase, supported by infrastructure and global demand.
🔎 Conclusion
SOLARINDS is a strong swing trade candidate. Entry near 13,200–13,400 ₹ offers a favorable risk-reward setup, with exit targets around 14,800–15,000 ₹. Strong fundamentals and profit growth support momentum, but high valuations and weak institutional sentiment suggest cautious trading. Best suited for traders monitoring RSI and resistance levels closely.