SOLARINDS - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.8

📊 Analysis Summary

SOLARINDS (Solar Industries) is a fundamentally strong stock with exceptional ROE and ROCE, but its current technical setup is weak and oversold, making it a risky candidate for swing trading in the short term. The stock is trading well below its 50 DMA with bearish momentum, and the high valuation adds further caution.

✅ Strengths

Outstanding ROCE (38.1%) and ROE (32.6%): Top-tier operational and financial efficiency.

EPS of ₹134: Strong earnings base.

Low Debt-to-Equity (0.22): Financially sound.

FII Buying (+0.97%): Positive institutional sentiment.

Consistent PAT (₹322 Cr. vs ₹315 Cr.): Stable profitability.

Above 200 DMA (₹12,711): Long-term trend still intact.

⚠️ Weaknesses

High P/E (104) vs Industry PE (23.1): Significantly overvalued.

RSI at 24.3: Deeply oversold — risk of further downside or weak bounce.

MACD Negative (-496): Strong bearish momentum.

Trading Below 50 DMA (₹15,352): Short-term downtrend confirmed.

Low Dividend Yield (0.07%): Minimal income cushion.

DII Selling (-0.51%): Domestic institutions reducing exposure.

PEG Ratio (2.51): Expensive even after adjusting for growth.

52w Index at 64.2%: Well below recent high — poor relative strength.

📈 Optimal Entry Price

Wait for Reversal Confirmation: ₹14,000–₹14,200 Only consider entry if RSI rises above 30 and MACD flattens or turns positive.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹15,300–₹15,500 Near 50 DMA — likely resistance zone.

Stop Loss: ₹13,800 Below recent support — exit if weakness continues.

🧠 Final Thoughts

SOLARINDS is a high-quality stock in a technical downtrend, making it unsuitable for swing trading at the moment. Traders should wait for momentum indicators to improve before entering. Long-term investors may still find value in its strong fundamentals, but swing traders should be cautious.

Would you like to explore defense or industrial sector stocks with better short-term setups?

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