SRF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | SRF | Market Cap | 75,612 Cr. | Current Price | 2,551 ₹ | High / Low | 3,325 ₹ |
| Stock P/E | 42.0 | Book Value | 406 ₹ | Dividend Yield | 0.35 % | ROCE | 13.7 % |
| ROE | 11.5 % | Face Value | 10.0 ₹ | DMA 50 | 2,565 ₹ | DMA 200 | 2,760 ₹ |
| Chg in FII Hold | -0.81 % | Chg in DII Hold | 0.99 % | PAT Qtr | 528 Cr. | PAT Prev Qtr | 363 Cr. |
| RSI | 53.8 | MACD | 0.89 | Volume | 3,33,041 | Avg Vol 1Wk | 3,58,476 |
| Low price | 2,314 ₹ | High price | 3,325 ₹ | PEG Ratio | -7.53 | Debt to equity | 0.25 |
| 52w Index | 23.5 % | Qtr Profit Var | 88.5 % | EPS | 58.4 ₹ | Industry PE | 19.0 |
📊 SRF shows a relatively strong outlook for swing trading. The RSI at 53.8 indicates neutral momentum, while the MACD is slightly positive (0.89), suggesting mild bullishness. The current price (2,551 ₹) is close to the 50 DMA (2,565 ₹) but below the 200 DMA (2,760 ₹), reflecting short-term stability but longer-term weakness. Fundamentals are solid with low debt (0.25), strong EPS (58.4 ₹), and robust quarterly profit growth (88.5%). However, the valuation is expensive with a P/E of 42.0 compared to the industry average of 19.0.
💡 Optimal Entry Price: Around 2,500–2,520 ₹, near short-term support levels.
📈 Exit Strategy: If already holding, consider exiting near 2,700–2,750 ₹ (200 DMA resistance zone) unless momentum strengthens further.
Positive
- Quarterly profit growth of 88.5% (PAT: 528 Cr vs 363 Cr).
- EPS of 58.4 ₹ indicates strong earnings power.
- Low debt-to-equity ratio (0.25) reduces financial risk.
- ROCE at 13.7% and ROE at 11.5% show efficient capital use.
Limitation
- High P/E ratio (42.0) compared to industry average (19.0), making valuation expensive.
- Price below 200 DMA (2,760 ₹) indicates longer-term weakness.
- Trading volume (3.33 lakh) is slightly below 1-week average (3.58 lakh), showing reduced participation.
Company Negative News
- Decline in FII holdings (-0.81%) reflects reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.99%), showing strong domestic institutional support.
- Strong quarterly profit growth and improved PAT.
- 52-week index performance (+23.5%) highlights resilience.
Industry
- Industry PE is 19.0, much lower than SRF’s 42.0, suggesting peers may be more attractively valued.
- Chemicals and industrial sector remains cyclical but benefits from global demand in specialty chemicals.
Conclusion
⚖️ SRF is a good candidate for swing trading. Entry near 2,500–2,520 ₹ could provide a rebound opportunity, with potential upside toward 2,700–2,750 ₹. Strong fundamentals and low debt support stability, but expensive valuation and longer-term technical weakness warrant cautious positioning.