⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

TARIL - Swing Trade Analysis with AI Signals

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Rating: 3.7

Last Updated Time : 05 May 26, 04:57 pm

📊 Swing Trade Rating: 3.7

Stock Code TARIL Market Cap 9,984 Cr. Current Price 333 ₹ High / Low 579 ₹
Stock P/E 44.3 Book Value 48.0 ₹ Dividend Yield 0.06 % ROCE 20.8 %
ROE 17.0 % Face Value 1.00 ₹ DMA 50 300 ₹ DMA 200 345 ₹
Chg in FII Hold 1.32 % Chg in DII Hold -2.41 % PAT Qtr 77.5 Cr. PAT Prev Qtr 71.0 Cr.
RSI 59.6 MACD 13.5 Volume 26,22,672 Avg Vol 1Wk 50,14,904
Low price 224 ₹ High price 579 ₹ PEG Ratio 0.54 Debt to equity 0.29
52w Index 30.6 % Qtr Profit Var 4.34 % EPS 7.51 ₹ Industry PE 37.8

Analysis: TARIL shows decent fundamentals with strong ROCE (20.8%) and ROE (17.0%), along with low debt-to-equity (0.29). The PEG ratio of 0.54 suggests undervaluation relative to growth. However, the high P/E (44.3 vs industry 37.8) and weak dividend yield (0.06%) limit attractiveness. Technical indicators (RSI 59.6, MACD positive) point to moderate bullish momentum, but volumes are below average, indicating weak participation. This makes TARIL a cautious swing trade candidate.

Optimal Entry Price: Around 300–310 ₹ (near 50 DMA support).

Exit Strategy if Holding: Consider exiting near 360–370 ₹ resistance zone unless momentum strengthens further.

✅ Positive

  • Strong ROCE (20.8%) and ROE (17.0%).
  • Low debt-to-equity ratio (0.29), showing financial stability.
  • PEG ratio of 0.54 indicates undervaluation relative to growth.
  • Quarterly PAT growth from 71 Cr. to 77.5 Cr.

⚠️ Limitation

  • High P/E ratio (44.3) compared to industry average (37.8).
  • Dividend yield at 0.06% is negligible.
  • Trading volumes below 1-week average, limiting breakout potential.

📉 Company Negative News

  • Institutional selling pressure with DII holdings down (-2.41%).
  • Stock trading below 200 DMA (345 ₹), showing medium-term weakness.

📈 Company Positive News

  • Strong FII interest with holdings up (+1.32%).
  • EPS at 7.51 ₹ supports earnings quality.
  • Stable profit growth despite market volatility.

🏭 Industry

  • Sector PE at 37.8 highlights TARIL’s premium valuation.
  • Industry demand remains steady with growth opportunities.
  • Peers trade at lower multiples, making TARIL relatively expensive.

📝 Conclusion

TARIL is a moderately strong swing trade candidate with undervaluation signals (PEG ratio) and solid fundamentals. Entry near 300–310 ₹ offers a favorable setup, with an exit target around 360–370 ₹. Weak dividend yield and institutional selling warrant caution, but FII interest and growth potential provide support for short-term trading opportunities.

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