TATACHEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.1
| Stock Code | TATACHEM | Market Cap | 20,516 Cr. | Current Price | 806 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 30.8 | Book Value | 739 ₹ | Dividend Yield | 1.37 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 707 ₹ | DMA 200 | 785 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.43 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 73.2 | MACD | 33.5 | Volume | 22,85,699 | Avg Vol 1Wk | 99,29,788 |
| Low price | 580 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.52 | Debt to equity | 0.11 |
| 52w Index | 50.5 % | Qtr Profit Var | 18.4 % | EPS | 26.4 ₹ | Industry PE | 19.0 |
TATACHEM shows weak fundamentals but strong technical momentum, making it a speculative candidate for swing trading. The company has a P/E ratio of 30.8 (vs. industry average of 19.0), but ROCE (3.67%) and ROE (2.81%) are low, and quarterly PAT declined (85.3 Cr. vs. 178 Cr.). Technically, the stock is trading above its 50 DMA (707 ₹) and near its 200 DMA (785 ₹), with RSI at 73.2 (overbought) and MACD at 33.5 (bullish), suggesting strong momentum but risk of correction.
Optimal Entry Price: Entry can be considered around 780–800 ₹, near the 200 DMA support.
Exit Strategy (if already holding): Exit near 840–860 ₹ resistance or if RSI rises further into overbought territory and momentum weakens.
✅ Positive
- Dividend yield of 1.37% adds shareholder value.
- Stock trading above both 50 DMA and 200 DMA indicates bullish trend.
- MACD positive, confirming upward momentum.
- Debt-to-equity ratio at 0.11 shows low leverage.
⚠️ Limitation
- Weak profitability metrics (ROCE 3.67%, ROE 2.81%).
- Quarterly PAT dropped significantly compared to previous quarter.
- RSI at 73.2 suggests overbought conditions, risk of pullback.
📉 Company Negative News
- Quarterly PAT fell from 178 Cr. to 85.3 Cr.
- FII holdings decreased by 0.36%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 0.43%, showing domestic institutional support.
- EPS of 26.4 ₹ provides moderate earnings visibility.
- Dividend yield supports long-term investors.
🏭 Industry
- Industry average P/E is 19.0, lower than TATACHEM’s 30.8.
- Peers may offer better valuations, but TATACHEM shows strong technical momentum.
🔎 Conclusion
TATACHEM is technically strong but fundamentally weak, making it a speculative swing trade opportunity. Entry around 780–800 ₹ is reasonable, with an exit target near 840–860 ₹. Caution is advised due to overbought RSI levels and declining profitability, which could trigger short-term corrections.