SRF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | SRF | Market Cap | 73,515 Cr. | Current Price | 2,479 ₹ | High / Low | 3,325 ₹ |
| Stock P/E | 40.8 | Book Value | 406 ₹ | Dividend Yield | 0.36 % | ROCE | 13.7 % |
| ROE | 11.5 % | Face Value | 10.0 ₹ | DMA 50 | 2,714 ₹ | DMA 200 | 2,846 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.65 % | PAT Qtr | 528 Cr. | PAT Prev Qtr | 363 Cr. |
| RSI | 40.6 | MACD | -75.5 | Volume | 5,22,916 | Avg Vol 1Wk | 8,00,139 |
| Low price | 2,314 ₹ | High price | 3,325 ₹ | PEG Ratio | -7.32 | Debt to equity | 0.25 |
| 52w Index | 16.3 % | Qtr Profit Var | 88.5 % | EPS | 58.4 ₹ | Industry PE | 15.2 |
📊 SRF trades at ₹2,479, well below its 50DMA (₹2,714) and 200DMA (₹2,846). Technical indicators (RSI 40.6, MACD -75.5) suggest weak momentum. Fundamentals show strong profit growth and low debt, but valuation is expensive compared to industry PE. This makes SRF a cautious swing trade candidate.
💡 Optimal Entry Price: Around ₹2,350–2,400 (near support zone and oversold RSI).
🔔 Exit Strategy if Holding: Consider exiting near ₹2,700–2,750 (around 50DMA resistance) unless momentum improves.
✅ Positive
- Quarterly PAT growth from ₹363 Cr. to ₹528 Cr. (88.5% increase).
- EPS of ₹58.4 indicates strong earnings power.
- Low debt-to-equity ratio of 0.25 ensures financial stability.
- DII holdings increased by 0.65%, showing domestic confidence.
⚠️ Limitation
- High P/E of 40.8 compared to industry PE of 15.2.
- PEG ratio of -7.32 suggests poor growth valuation.
- Dividend yield is low at 0.36%.
- ROE at 11.5% and ROCE at 13.7% are moderate.
📉 Company Negative News
- Weak technicals: RSI near oversold, MACD strongly negative.
- Price trading below both 50DMA and 200DMA.
- FII holdings decreased by 0.50%, showing reduced foreign confidence.
📈 Company Positive News
- Strong quarterly profit growth and rising EPS.
- Low debt enhances financial resilience.
- DII confidence reflected in increased holdings.
🏭 Industry
- Industry PE at 15.2, much lower than SRF’s valuation.
- Chemicals and industrial sector remains cyclical with global demand fluctuations.
- Domestic demand growth supports long-term fundamentals.
🔎 Conclusion
SRF is fundamentally strong with robust profit growth and low debt, but technically weak and overvalued compared to industry peers. It is a cautious swing trade candidate if entered near ₹2,350–2,400 with a target around ₹2,700–2,750. Risk management is essential due to weak technicals and high valuation.