SUMICHEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | SUMICHEM | Market Cap | 19,139 Cr. | Current Price | 382 ₹ | High / Low | 665 ₹ |
| Stock P/E | 35.3 | Book Value | 64.0 ₹ | Dividend Yield | 0.31 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 413 ₹ | DMA 200 | 471 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.18 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 37.3 | MACD | -8.60 | Volume | 2,28,322 | Avg Vol 1Wk | 3,55,829 |
| Low price | 367 ₹ | High price | 665 ₹ | PEG Ratio | 7.04 | Debt to equity | 0.02 |
| 52w Index | 5.26 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 21.3 |
Analysis: Sumitomo Chemical India (SUMICHEM) presents weak swing trading potential at present. The RSI at 37.3 indicates oversold conditions, but the MACD (-8.60) confirms bearish momentum. The current price (₹382) is below both the 50 DMA (₹413) and 200 DMA (₹471), showing short-term and long-term weakness. Quarterly profit fell sharply (₹86.2 Cr vs. ₹178 Cr), and the PEG ratio (7.04) suggests expensive valuation relative to growth. On the positive side, ROCE (25.1%) and ROE (18.8%) are strong, and debt-to-equity is very low (0.02), indicating financial stability.
Optimal Entry Price: Around ₹370–375, near support levels and close to the 52-week low.
Exit Strategy (if already holding): Consider exiting near ₹420–430 if momentum recovers, or cut losses if price falls below ₹365.
✅ Positive
- Strong ROCE (25.1%) and ROE (18.8%) show operational efficiency.
- Debt-to-equity ratio of 0.02 indicates very low financial risk.
- Trading volume remains healthy, supporting liquidity.
- DII holdings increased (+0.18%), showing domestic institutional support.
⚠️ Limitation
- Quarterly profit dropped significantly (₹86.2 Cr vs. ₹178 Cr).
- PEG ratio of 7.04 suggests overvaluation relative to growth.
- Stock P/E (35.3) is much higher than industry average (21.3).
- Price below both 50 DMA and 200 DMA reflects weakness.
📰 Company Negative News
- Sharp decline in quarterly profits raises concerns about earnings stability.
- FII holdings decreased (-0.28%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Strong return ratios (ROCE and ROE) highlight efficiency.
- Debt-free balance sheet provides financial resilience.
- DII participation increased, signaling domestic confidence.
🏦 Industry
- Chemical sector PE (21.3) is lower than SUMICHEM’s PE (35.3), making the stock relatively expensive.
- Industry supported by demand in agriculture and specialty chemicals, but margins remain volatile.
📌 Conclusion
SUMICHEM is a weak candidate for swing trading at current levels due to declining profits, high valuation, and bearish technicals. Entry near ₹370–375 offers better risk-reward. Exit near ₹420–430 if momentum recovers, or below ₹365 to protect capital.