SONACOMS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | SONACOMS | Market Cap | 33,150 Cr. | Current Price | 533 ₹ | High / Low | 560 ₹ |
| Stock P/E | 52.6 | Book Value | 89.7 ₹ | Dividend Yield | 0.60 % | ROCE | 18.3 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 481 ₹ | DMA 200 | 488 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | 0.61 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 71.6 | MACD | 10.5 | Volume | 21,75,759 | Avg Vol 1Wk | 40,32,901 |
| Low price | 380 ₹ | High price | 560 ₹ | PEG Ratio | 2.93 | Debt to equity | 0.03 |
| 52w Index | 85.2 % | Qtr Profit Var | 26.0 % | EPS | 9.50 ₹ | Industry PE | 28.7 |
📊 SONACOMS shows strong potential for swing trading. The current price (533 ₹) is well above both the 50 DMA (481 ₹) and 200 DMA (488 ₹), reflecting bullish momentum. RSI at 71.6 indicates the stock is in overbought territory, suggesting caution for new entries. MACD (10.5) confirms positive momentum. Fundamentals are solid with ROCE (18.3%) and ROE (14.2%), supported by very low debt-to-equity (0.03). Quarterly PAT improved from 168 Cr. to 183 Cr. (+26%), showing earnings growth. Valuation is stretched with P/E of 52.6 compared to industry PE of 28.7, and PEG ratio of 2.93 indicates expensive growth. Institutional sentiment is positive with both FII (+0.42%) and DII (+0.61%) increasing holdings.
💡 Optimal Entry Price: Around 500–510 ₹ (near support zone and safer entry).
🚪 Exit Strategy: If already holding, consider exiting near 555–560 ₹ (recent high and resistance zone) or if RSI remains above 70 with signs of weakening momentum.
✅ Positive
- Strong ROCE (18.3%) and ROE (14.2%) highlight efficiency.
- EPS of 9.50 ₹ supports earnings visibility.
- Debt-to-equity ratio of 0.03 shows virtually no leverage risk.
- Quarterly PAT growth (+26%) reflects improving profitability.
- Institutional support with both FII and DII increasing holdings.
⚠️ Limitation
- High P/E of 52.6 compared to industry PE of 28.7 suggests overvaluation.
- PEG ratio of 2.93 indicates expensive valuation relative to growth.
- RSI at 71.6 shows overbought conditions, limiting immediate upside.
- Dividend yield of 0.60% is modest.
📉 Company Negative News
- Valuation concerns due to high P/E and PEG ratio.
- Overbought RSI increases risk of short-term correction.
📈 Company Positive News
- Quarterly PAT improved from 168 Cr. to 183 Cr.
- Strong efficiency ratios (ROCE and ROE).
- Stock trading above both 50 DMA and 200 DMA reflects bullish momentum.
- Institutional inflows from both FII and DII.
🏭 Industry
- Industry PE at 28.7 vs SONACOMS’s 52.6 highlights premium valuation.
- Auto components sector remains cyclical but benefits from global demand recovery.
🔎 Conclusion
SONACOMS is a strong swing trade candidate. Entry near 500–510 ₹ offers a safer risk-reward setup, with exit targets around 555–560 ₹. Strong fundamentals, earnings growth, and institutional support drive momentum, but high valuations and overbought RSI suggest cautious trading. Best suited for traders monitoring resistance levels and momentum closely.