SUMICHEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | SUMICHEM | Market Cap | 21,424 Cr. | Current Price | 429 ₹ | High / Low | 665 ₹ |
| Stock P/E | 39.5 | Book Value | 64.0 ₹ | Dividend Yield | 0.28 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 447 ₹ | DMA 200 | 495 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.18 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 48.4 | MACD | -9.97 | Volume | 2,70,145 | Avg Vol 1Wk | 3,83,956 |
| Low price | 396 ₹ | High price | 665 ₹ | PEG Ratio | 7.88 | Debt to equity | 0.02 |
| 52w Index | 12.2 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 30.9 |
📊 SUMICHEM currently shows limited potential for swing trading. The stock is trading below both its 50 DMA (447 ₹) and 200 DMA (495 ₹), indicating weak technical momentum. RSI at 48.4 suggests neutral strength, while MACD at -9.97 reflects bearish sentiment. Despite strong fundamentals such as ROCE (25.1%) and ROE (18.8%), the high P/E (39.5 vs industry 30.9) and sharp decline in quarterly PAT (86.2 Cr vs 178 Cr) raise caution. The PEG ratio of 7.88 also signals overvaluation relative to growth.
✅ Optimal Entry Price: Around 410–420 ₹ (closer to support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 450–460 ₹ resistance zone, or exit if price falls below 405 ₹ support.
Positive
- Strong ROCE (25.1%) and ROE (18.8%) indicate efficient capital use
- Low debt-to-equity ratio (0.02), showing financial stability
- DII holdings increased (+0.18%), reflecting domestic institutional support
- EPS of 10.6 ₹ supports valuation strength
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak technical trend
- High P/E ratio (39.5) compared to industry average (30.9)
- PEG ratio (7.88) suggests overvaluation relative to growth
- Low dividend yield (0.28%), limited passive income
Company Negative News
- Quarterly PAT dropped significantly (86.2 Cr vs 178 Cr)
- FII holdings decreased (-0.28%), showing reduced foreign investor confidence
Company Positive News
- Strong return ratios (ROCE and ROE)
- Stable financial structure with minimal debt
- DII inflows indicate domestic investor trust
Industry
- Chemicals sector remains in demand due to industrial and agricultural applications
- Industry PE at 30.9, showing moderate valuation compared to SUMICHEM’s premium
- Sector outlook supported by long-term growth in specialty chemicals
Conclusion
⚖️ SUMICHEM is a cautious candidate for swing trading. Entry near 410–420 ₹ offers a safer setup, while profit booking should be considered around 450–460 ₹. Weak technicals and declining profits limit upside potential, but strong fundamentals and low debt provide stability for medium-term investors.