SUNDRMFAST - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.5

📊 SUNDRMFAST presents a cautious but moderately favorable outlook for swing trading. The stock is trading at ₹947, slightly below its 50 DMA (₹959) and 200 DMA (₹1,003), showing short-term weakness. RSI (42.2) is neutral, while MACD (-7.67) indicates bearish momentum. Fundamentals remain strong with ROCE (17.4%), ROE (14.7%), and low debt-to-equity (0.14). However, the high P/E (38 vs industry 30) and PEG ratio (6.60) suggest overvaluation, limiting upside potential.

✅ Optimal Entry Price: Around ₹920–940, closer to support levels.

🚪 Exit Strategy: If already holding, consider exiting near ₹1,000–1,030 (resistance zone) or on weakness below ₹910.

Positive

• 💡 Strong ROCE (17.4%) and ROE (14.7%) indicate efficient capital use.
• 💡 Low debt-to-equity (0.14) ensures financial stability.
• 💡 Quarterly profit growth (+7.37%) shows improving performance.
• 💡 DII holdings increased (+0.61%), reflecting domestic institutional confidence.

Limitation

• ⚠️ Trading below DMA levels signals weak technical momentum.
• ⚠️ High P/E (38.0) compared to industry average (30.0).
• ⚠️ PEG ratio of 6.60 suggests limited growth potential relative to valuation.
• ⚠️ FII holdings decreased (-0.54%), showing reduced foreign investor interest.

Company Negative News

• 📉 Stock trading below DMA 200 indicates short-term weakness.
• 📉 High valuation metrics limit upside potential for swing trades.

Company Positive News

• 📈 PAT improved from ₹138 Cr. to ₹140 Cr. in the last quarter.
• 📈 Strong EPS of ₹25.4 supports earnings consistency.
• 📈 52-week gain of 38.2% shows resilience in broader performance.

Industry

• 🏭 Industry P/E at 30.0 highlights SUNDRMFAST’s premium valuation.
• 🏭 Auto components sector remains cyclical but supported by steady demand recovery.

Conclusion

🔎 SUNDRMFAST is a moderately suitable candidate for swing trading. Entry near ₹920–940 offers a favorable risk-reward setup, while upside is capped around ₹1,000–1,030 due to weak technicals and stretched valuation. Best suited for cautious traders looking for short-term rebounds rather than aggressive momentum plays.

I can also outline stop-loss and trailing exit levels to refine SUNDRMFAST’s swing trade plan if you’d like.