SRF - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📉 Current Price: ₹2,939

📊 Optimal Entry Price: ₹2,900–2,920 (near 200 DMA support)

📈 Suggested Exit (if holding): ₹3,150–3,200 (resistance zone below 52-week high)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 13.7% and ROE at 11.5% indicate efficient capital use
• 📉 Low Debt: Debt-to-equity ratio of 0.25 shows financial prudence
• 📊 MACD Positive: Bullish crossover suggests potential upward momentum
• 📉 RSI at 42.2: Near oversold zone, indicating possible bounce
• 📈 Qtr Profit Growth: 61.1% quarterly profit variation shows strong earnings momentum

⚠️ Limitation

• 📉 High Valuation: P/E of 56.1 vs industry average of 23.4 implies overvaluation
• 📉 Negative PEG: -10.0 suggests poor earnings growth relative to valuation
• 📉 Below 50 DMA: Current price is under 50 DMA (₹2,994), indicating short-term weakness
• 📉 Low Volume: Current volume (1.58L) is well below 1-week average (3.96L)

🚫 Company Negative News

• 📉 Sequential PAT Decline: PAT dropped from ₹397 Cr to ₹363 Cr QoQ
• 📉 FII Selling: Foreign institutional holding declined by 0.26%

✅ Company Positive News

• 🚀 Strong YoY PAT Growth: Driven by chemicals segment performance
• 🏗️ Capex Expansion: ₹745 Cr approved for Specialty Fluoropolymers
• 🌱 Strategic Land Acquisition: 300 acres in Odisha for future growth

🏭 Industry

• 🧪 Specialty Chemicals Outlook: Mixed due to global pricing pressures, but fluorine-based segments remain resilient
• 📉 Valuation Caution: Many chemical stocks trading at high multiples amid uncertain demand

🧾 Conclusion

SRF presents a moderate swing trade opportunity. While fundamentals are strong and technical indicators suggest a potential bounce, valuation concerns and declining volumes warrant caution. Entry near ₹2,900 (200 DMA) offers a favorable risk-reward setup. If already holding, consider exiting near ₹3,150–3,200 where resistance is expected.

I can chart SRF’s price action with support/resistance zones if you’d like a visual reference.