TANLA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.9

📊 Analysis Summary

TANLA is a technically stable and fundamentally undervalued stock with strong return metrics and low debt. Despite recent FII selling and a slight dip in quarterly profit, the stock is trading near key moving averages with a bullish MACD, making it a good candidate for a cautious swing trade.

✅ Strengths

Low P/E (17.8) vs Industry PE (50.9): Significantly undervalued.

ROCE (29.2%) & ROE (24.1%): Excellent operational and financial efficiency.

EPS of ₹36.0: Strong earnings base.

MACD Positive (4.94): Bullish momentum signal.

Dividend Yield (1.87%): Attractive for income-seeking traders.

Debt-to-Equity (0.03): Virtually debt-free.

Trading near DMA 50 (₹626) and DMA 200 (₹644): Consolidation zone — potential breakout.

⚠️ Weaknesses

RSI at 49.3: Neutral — lacks strong momentum.

FII Selling (-3.08%): Foreign investors reducing exposure.

Quarterly Profit Decline (-16.2%): Minor earnings contraction.

PEG Ratio (-8.80): Indicates negative growth expectations.

Volume Below Average: Current volume (6.33L) vs 1-week average (7.91L).

52w Index at 38.7%: Weak relative strength — far from yearly high.

📈 Optimal Entry Price

Buy Zone: ₹625–₹635 Near 50 DMA — enter on RSI crossing 52 and volume exceeding 8L.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹680–₹700 Short-term resistance zone before major supply near ₹750.

Stop Loss: ₹610 Below 50 DMA — exit if momentum fades or MACD turns negative.

🧠 Final Thoughts

TANLA offers a value-driven swing trade setup with strong fundamentals and technical support. While not explosive, it’s suitable for traders seeking a low-risk entry with moderate upside. Entry should be timed with volume confirmation and RSI improvement.

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