TATACHEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | TATACHEM | Market Cap | 18,230 Cr. | Current Price | 718 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 27.3 | Book Value | 739 ₹ | Dividend Yield | 1.53 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 765 ₹ | DMA 200 | 857 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 0.23 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 42.2 | MACD | -11.0 | Volume | 3,93,550 | Avg Vol 1Wk | 4,33,198 |
| Low price | 692 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.24 | Debt to equity | 0.11 |
| 52w Index | 7.62 % | Qtr Profit Var | 18.4 % | EPS | 26.4 ₹ | Industry PE | 18.2 |
📊 TATACHEM shows limited potential for swing trading at present. The stock is trading below both its 50 DMA (765 ₹) and 200 DMA (857 ₹), indicating weak technical momentum. RSI at 42.2 suggests the stock is approaching oversold territory, while MACD at -11.0 confirms bearish sentiment. Valuation is slightly stretched with a P/E of 27.3 compared to the industry average of 18.2, and PEG ratio (-2.24) highlights poor growth prospects relative to valuation. Fundamentals are weak with ROCE at 3.67% and ROE at 2.81%. Quarterly PAT has declined sharply (85.3 Cr vs 178 Cr), raising caution for near-term performance.
✅ Optimal Entry Price: Around 700–710 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 750–760 ₹ resistance zone, or exit if price falls below 690 ₹ support.
Positive
- Dividend yield of 1.53% provides passive income
- DII holdings increased (+0.23%), showing domestic institutional support
- EPS of 26.4 ₹ supports earnings base
- Low debt-to-equity ratio (0.11), reflecting financial stability
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak technical trend
- Low ROCE (3.67%) and ROE (2.81%), reflecting poor efficiency
- PEG ratio (-2.24) indicates overvaluation relative to growth
- FII holdings decreased (-1.47%), showing reduced foreign investor confidence
Company Negative News
- Quarterly PAT declined significantly (85.3 Cr vs 178 Cr)
- Weak return ratios compared to peers
- Stock trading near lower end of 52-week index (7.62%)
Company Positive News
- DII inflows indicate domestic investor trust
- Dividend yield supports investor returns
- Stable financial structure with low leverage
Industry
- Chemicals sector remains cyclical but supported by industrial demand
- Industry PE at 18.2, showing TATACHEM trades at a premium
- Sector outlook tied to commodity cycles and global demand
Conclusion
⚖️ TATACHEM is a weak candidate for swing trading due to poor technicals and declining profits. Entry near 700–710 ₹ may provide a short-term rebound, but profit booking should be considered around 750–760 ₹. Caution is advised as momentum remains bearish despite sector stability.