SUMICHEM - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

📉 Current Price: ₹499

📊 Optimal Entry Price: ₹485–495 (near RSI support and recent low)

📈 Suggested Exit (if holding): ₹535–545 (near 50 DMA resistance)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 25.1% and ROE at 18.8% reflect solid capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.02 indicates excellent financial health
• 📊 Volume Strength: Current volume (4.44L) above 1-week average (3.81L)
• 📈 DII Buying: Domestic institutional holding increased by 0.32%

⚠️ Limitation

• 📉 MACD Negative: -12.0 signals bearish momentum
• 📉 RSI at 33.2: Near oversold zone but not yet reversing
• 📉 High P/E: 46.0 vs industry average of 29.9 suggests overvaluation
• 📉 Elevated PEG Ratio: 9.18 implies expensive valuation relative to growth
• 📉 Below DMA Levels: Price trading under both 50 DMA (₹538) and 200 DMA (₹537)

🚫 Company Negative News

• 📉 Quarterly PAT Decline: Profit fell from ₹180 Cr to ₹178 Cr (down 6.78%)

✅ Company Positive News

• 🧪 Product Innovation: Continued investment in specialty chemicals and crop protection solutions
• 🌱 Sustainability Focus: Expansion in eco-friendly and green chemistry segments

🏭 Industry

• 🧬 Chemicals Sector: Supported by demand in agriculture, pharma, and industrial applications
• 📉 Valuation Pressure: Sector trading at elevated multiples amid global supply chain challenges

🧾 Conclusion

SUMICHEM presents a cautious swing trade opportunity with strong fundamentals and sector relevance. However, technical weakness and valuation concerns suggest waiting for confirmation. Entry near ₹485–495 is ideal, with exit near ₹535–545. Monitor MACD and RSI reversal before initiating new trades.

I can chart SUMICHEM’s price action with support and resistance zones to help you time your trade more precisely.