⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUMICHEM - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for SUMICHEM based on the provided parameters
Swing Trade Rating: 3.6
| Stock Code | SUMICHEM | Market Cap | 22,569 Cr. | Current Price | 452 ₹ | High / Low | 665 ₹ |
| Stock P/E | 40.7 | Book Value | 67.8 ₹ | Dividend Yield | 0.27 % | ROCE | 23.5 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 455 ₹ | DMA 200 | 461 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.33 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 86.2 Cr. |
| RSI | 44.9 | MACD | 0.76 | Volume | 4,68,507 | Avg Vol 1Wk | 3,98,996 |
| Low price | 363 ₹ | High price | 665 ₹ | PEG Ratio | 12.4 | Debt to equity | 0.02 |
| 52w Index | 29.7 % | Qtr Profit Var | 12.4 % | EPS | 10.9 ₹ | Industry PE | 22.0 |
📈 Optimal Entry Price: Around 445–455 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 490–500 ₹ resistance zone. A stop-loss can be placed below 430 ₹.
Positive
- ✅ Strong ROCE (23.5%) and ROE (17.7%) indicate efficient capital use.
- ✅ PAT improved to 111 Cr. from 86.2 Cr. (12.4% quarterly growth).
- ✅ Very low debt-to-equity ratio (0.02), showing financial stability.
- ✅ Institutional support with FII (+0.04%) and DII (+0.33%) increases.
Limitation
- ⚠️ High P/E of 40.7 compared to industry PE of 22.0, suggesting overvaluation.
- ⚠️ PEG ratio of 12.4 indicates expensive growth expectations.
- ⚠️ Dividend yield of 0.27% is negligible.
- ⚠️ RSI at 44.9 shows weak momentum, hovering near neutral zone.
Company Negative News
- 📉 Valuation concerns due to high P/E and PEG ratios.
- 📉 Stock trading close to 50 DMA and 200 DMA, showing indecisive trend.
Company Positive News
- 📈 Consistent profit growth with quarterly PAT improvement.
- 📈 Strong fundamentals with high ROCE and ROE.
- 📈 Stable balance sheet with minimal debt.
Industry
- 🏭 Industry PE at 22.0, SUMICHEM trades at premium (40.7).
- 🏭 Agrochemicals sector benefits from rising demand in agriculture and crop protection.
- 🏭 Sector outlook remains positive with government support for agri-inputs.
Conclusion
🔎 SUMICHEM is a moderate swing trade candidate with strong fundamentals but stretched valuations. Entry near 445–455 ₹ offers limited risk, while profit booking near 490–500 ₹ is advisable. Weak technical momentum and high valuation multiples warrant caution, though long-term fundamentals remain supportive.
Would you like me to extend this into a peer comparison against UPL, Bayer CropScience, and PI Industries to benchmark SUMICHEM’s valuation and momentum?