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SWANCORP - Swing Trade Analysis with AI Signals

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Rating: 2.3

Last Updated Time : 05 May 26, 04:46 pm

📊 Swing Trade Rating: 2.3

Stock Code SWANCORP Market Cap 10,780 Cr. Current Price 344 ₹ High / Low 527 ₹
Stock P/E 580 Book Value 146 ₹ Dividend Yield 0.03 % ROCE 0.12 %
ROE 0.07 % Face Value 1.00 ₹ DMA 50 352 ₹ DMA 200 414 ₹
Chg in FII Hold 0.71 % Chg in DII Hold 0.06 % PAT Qtr 2.22 Cr. PAT Prev Qtr 5.61 Cr.
RSI 52.3 MACD -0.62 Volume 15,97,663 Avg Vol 1Wk 26,43,122
Low price 295 ₹ High price 527 ₹ PEG Ratio -454 Debt to equity 0.08
52w Index 21.3 % Qtr Profit Var 41.4 % EPS 0.59 ₹ Industry PE 15.5

SWANCORP shows weak fundamentals and limited technical strength, making it a risky candidate for swing trading. The stock’s extremely high P/E ratio (580 vs. industry average of 15.5), poor ROCE (0.12%) and ROE (0.07%), and sharp decline in quarterly profits all point to fundamental weakness. Technically, the stock is trading below its 200 DMA (414 ₹) and hovering near its 50 DMA (352 ₹), with neutral RSI (52.3) and negative MACD (-0.62), suggesting limited upside momentum.

Optimal Entry Price: Only consider entry near strong support levels around 295–310 ₹.

Exit Strategy (if already holding): Exit near resistance at 360–370 ₹ or if the price fails to hold above 344 ₹.

✅ Positive

  • Low debt-to-equity ratio (0.08) indicates financial stability.
  • FII holdings increased by 0.71%, showing some institutional interest.
  • Strong liquidity with high trading volume.

⚠️ Limitation

  • Extremely high P/E ratio compared to industry average.
  • Weak profitability metrics (ROCE and ROE).
  • Quarterly profit dropped significantly (41% decline).

📉 Company Negative News

  • Quarterly PAT fell from 5.61 Cr. to 2.22 Cr.
  • EPS remains very low at 0.59 ₹.

📈 Company Positive News

  • Minimal debt burden supports balance sheet stability.
  • Marginal increase in institutional investor holdings.

🏭 Industry

  • Industry average P/E is 15.5, far below SWANCORP’s 580.
  • Peers appear more reasonably valued, making SWANCORP less attractive.

🔎 Conclusion

SWANCORP is fundamentally weak and technically neutral-to-bearish, making it a poor candidate for swing trading. Entry should only be considered near strong support zones (295–310 ₹) with strict stop-losses. Current holders may look to exit near 360–370 ₹ to minimize downside risk.

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