STARHEALTH - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.3

📊 Based on the given parameters, STARHEALTH shows moderate potential for swing trading. The stock is trading close to its 200 DMA (462 ₹) and slightly below its 50 DMA (476 ₹), reflecting weak technical momentum. RSI at 37.2 indicates near-oversold conditions, while MACD at -7.41 confirms bearish sentiment. The optimal entry price would be near 455–465 ₹ if stability is confirmed. If already holding, consider exiting around 490–500 ₹ on rebounds unless volume and momentum strengthen further.

✅ Positive

• 📈 EPS of 9.07 ₹ supports fundamental strength
• 💹 ROCE (12.0%) and ROE (9.37%) show moderate efficiency
• 📊 Debt-to-equity ratio of 0.06 ensures financial stability
• 📈 DII holdings increased slightly (+0.01%), showing minor domestic institutional support
• 📈 PEG ratio of 1.37 suggests fair growth relative to valuation

⚠️ Limitation

• 📉 High P/E ratio (51.6) compared to industry average (42.8)
• 📉 Dividend yield at 0.00% offers no income support
• 📉 Current trading volume below weekly average, showing weaker participation
• 📉 Current price far below 52-week high (534 ₹), showing resistance pressure

🚨 Company Negative News

• 📉 Quarterly PAT declined sharply (54.9 Cr. vs 263 Cr.)
• 📉 Quarterly profit variation (-50.7%) highlights earnings weakness
• 📉 FII holdings decreased (-0.38%), showing reduced foreign investor confidence

🌟 Company Positive News

• 📈 EPS strength provides valuation support despite earnings decline
• 📈 Debt-to-equity ratio of 0.06 reflects strong balance sheet
• 📈 Slight increase in DII holdings (+0.01%) shows domestic confidence

🏭 Industry

• 📊 Industry PE at 42.8, lower than STARHEALTH’s valuation, indicating premium pricing
• 📈 Insurance sector remains cyclical, offering trading opportunities with sentiment-driven momentum shifts

📌 Conclusion

STARHEALTH is a cautious candidate for swing trading. While EPS strength, low debt, and fair PEG ratio provide positives, weak quarterly profits, stretched valuations, and bearish technicals limit immediate upside potential. Optimal entry is near 455–465 ₹, with exit around 490–500 ₹ if already holding. Traders should monitor RSI recovery and MACD trends before fresh positions.

I can also prepare a comparison of STARHEALTH with SONATSOFTW and SONACOMS to highlight which one offers the stronger swing trade opportunity.