SRF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | SRF | Market Cap | 86,661 Cr. | Current Price | 2,923 ₹ | High / Low | 3,325 ₹ |
| Stock P/E | 48.1 | Book Value | 406 ₹ | Dividend Yield | 0.31 % | ROCE | 13.7 % |
| ROE | 11.5 % | Face Value | 10.0 ₹ | DMA 50 | 2,923 ₹ | DMA 200 | 2,912 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.65 % | PAT Qtr | 528 Cr. | PAT Prev Qtr | 363 Cr. |
| RSI | 52.1 | MACD | -42.8 | Volume | 2,58,619 | Avg Vol 1Wk | 4,63,641 |
| Low price | 2,570 ₹ | High price | 3,325 ₹ | PEG Ratio | -8.63 | Debt to equity | 0.25 |
| 52w Index | 46.7 % | Qtr Profit Var | 88.5 % | EPS | 58.4 ₹ | Industry PE | 18.2 |
📊 SRF shows reasonable potential for swing trading. The current price (2,923 ₹) is aligned with both the 50 DMA (2,923 ₹) and 200 DMA (2,912 ₹), indicating consolidation. RSI at 52.1 suggests neutral momentum, while MACD at -42.8 reflects short-term weakness. Strong quarterly profit growth (88.5%) and EPS of 58.4 ₹ support fundamentals, but the high P/E of 48.1 compared to industry PE of 18.2 raises valuation concerns. Institutional activity is mixed, with FII holdings decreasing (-0.50%) and DII holdings increasing (+0.65%).
💡 Optimal Entry Price: Around 2,850–2,880 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 3,200–3,250 ₹ (resistance close to 52-week high) or if RSI rises above 65 with weakening momentum.
✅ Positive
- Quarterly PAT surged from 363 Cr. to 528 Cr. (88.5% growth).
- EPS of 58.4 ₹ indicates strong earnings capacity.
- Debt-to-equity ratio of 0.25 shows low leverage risk.
- DII holdings increased, reflecting domestic institutional confidence.
⚠️ Limitation
- High P/E of 48.1 compared to industry PE of 18.2 suggests overvaluation.
- MACD remains negative, signaling weak short-term momentum.
- Dividend yield of 0.31% is very low, limiting passive returns.
- FII holdings decreased, showing reduced foreign investor interest.
📉 Company Negative News
- Valuation concerns due to high P/E and negative PEG ratio (-8.63).
- Weak technical indicators (MACD negative, neutral RSI).
📈 Company Positive News
- Strong quarterly profit growth supports fundamentals.
- Low debt-to-equity ratio enhances financial stability.
- Stable price consolidation near DMA levels indicates potential breakout.
🏭 Industry
- Industry PE at 18.2 vs SRF’s 48.1 shows premium valuation.
- Chemicals and industrial sector remains cyclical but supported by demand in specialty chemicals.
🔎 Conclusion
SRF is a moderately attractive swing trade candidate. Entry near 2,850–2,880 ₹ offers a favorable risk-reward setup, with exit targets around 3,200–3,250 ₹. Strong fundamentals and profit growth support the stock, but high valuations and weak technical momentum suggest cautious trading. Suitable for traders who can monitor resistance levels and momentum closely.