SUMICHEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | SUMICHEM | Market Cap | 22,406 Cr. | Current Price | 449 ₹ | High / Low | 665 ₹ |
| Stock P/E | 41.3 | Book Value | 64.0 ₹ | Dividend Yield | 0.27 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 418 ₹ | DMA 200 | 458 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.33 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 60.5 | MACD | 10.6 | Volume | 5,63,976 | Avg Vol 1Wk | 2,72,645 |
| Low price | 363 ₹ | High price | 665 ₹ | PEG Ratio | 8.25 | Debt to equity | 0.02 |
| 52w Index | 28.6 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 25.3 |
📊 SUMICHEM shows mixed potential for swing trading. The RSI at 60.5 suggests the stock is moderately overbought, while MACD at 10.6 indicates bullish momentum. The ROCE of 25.1% and ROE of 18.8% highlight strong efficiency, but the high P/E of 41.3 compared to the industry average of 25.3 suggests overvaluation. The PEG ratio of 8.25 further signals expensive growth prospects. Quarterly PAT has dropped from ₹178 Cr. to ₹86.2 Cr., raising concerns about earnings stability. The stock is trading near its 50 DMA (₹418) and slightly below its 200 DMA (₹458), showing short-term strength but long-term caution.
💡 Optimal Entry Price: Around ₹420–430, closer to the 50 DMA support.
📈 Exit Strategy (if already holding): Consider booking profits near ₹460–470, just below the 200 DMA resistance.
Positive
- Strong ROCE (25.1%) and ROE (18.8%) indicate efficient capital use.
- Low debt-to-equity ratio (0.02) shows financial stability.
- Institutional investors (FII +0.04%, DII +0.33%) increased holdings.
- Stock trading above 50 DMA, showing short-term bullishness.
Limitation
- High P/E (41.3) compared to industry average (25.3).
- Negative PEG ratio (8.25) reflects expensive growth prospects.
- Quarterly PAT dropped significantly from ₹178 Cr. to ₹86.2 Cr.
- Dividend yield at 0.27% is low, limiting income potential.
Company Negative News
- Sharp decline in quarterly profits raises concerns about earnings consistency.
Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Institutional investors increased their stake, signaling confidence.
Industry
- Chemicals sector remains in demand, supported by agriculture and industrial applications.
- Industry PE at 25.3 is lower than SUMICHEM’s, suggesting relative overvaluation.
Conclusion
⚠️ SUMICHEM earns a swing trade rating of 3.9. Entry near ₹420–430 offers a safer risk-reward setup, while profit booking should be considered around ₹460–470. Strong efficiency and low debt support upside, but high valuation and declining profits limit near-term potential. Caution is advised for swing traders.