SONACOMS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📉 Current Price: ₹484

📊 Optimal Entry Price: ₹470–480 (near 50 DMA support)

📈 Suggested Exit (if holding): ₹510–530 (short-term resistance zone)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 18.3% and ROE at 14.2% reflect solid capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.03 indicates strong financial health
• 📊 MACD Positive: 13.3 suggests bullish momentum
• 📈 Quarterly PAT Growth: PAT rose from ₹127 Cr to ₹168 Cr, a 19.2% increase
• 📈 DII Buying: Domestic institutional holding increased by 5.53%
• 📊 Volume Surge: Current volume (17.6L) above 1-week average (13.0L)

⚠️ Limitation

• 📉 High P/E: 50.7 vs industry average of 32.8 suggests overvaluation
• 📉 Elevated PEG Ratio: 2.82 implies expensive valuation relative to growth
• 📉 RSI at 66.6: Approaching overbought zone, limiting upside potential
• 📉 Below 200 DMA: Price trading slightly under 200 DMA (₹491), indicating resistance

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 6.28%

✅ Company Positive News

• 🚗 EV Segment Growth: Continued expansion in electric vehicle components and global OEM partnerships
• 📈 EPS Strength: ₹9.31 supports valuation and earnings visibility
• 🌍 Export Momentum: Increasing contribution from international markets

🏭 Industry

• 🚘 Auto Components Sector: Benefiting from EV adoption and premiumization trends
• 📉 Valuation Risk: Sector trading at elevated multiples amid cyclical demand shifts

🧾 Conclusion

SONACOMS presents a strong swing trade setup with improving fundamentals, bullish technicals, and sector tailwinds. While valuation is rich and RSI is elevated, institutional buying and earnings growth support upside potential. Entry near ₹470–480 is ideal, with exit near ₹510–530. Watch for MACD strength and RSI reversal before initiating new trades.

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