⚠ 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.
TATACHEM - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for TATACHEM based on the provided parameters
Swing Trade Rating: 3.3
| Stock Code | TATACHEM | Market Cap | 18,678 Cr. | Current Price | 733 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 31.4 | Book Value | 758 ₹ | Dividend Yield | 1.50 % | ROCE | 4.06 % |
| ROE | 3.17 % | Face Value | 10.0 ₹ | DMA 50 | 733 ₹ | DMA 200 | 775 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.43 % | PAT Qtr | 48.0 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 48.2 | MACD | -3.36 | Volume | 3,73,611 | Avg Vol 1Wk | 7,16,638 |
| Low price | 580 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.03 | Debt to equity | 0.18 |
| 52w Index | 34.1 % | Qtr Profit Var | -50.5 % | EPS | 23.8 ₹ | Industry PE | 23.1 |
📈 Optimal Entry Price: Around 720–735 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 800–820 ₹ resistance zone. A stop-loss can be placed below 710 ₹.
Positive
- ✅ EPS of 23.8 ₹ supports valuation stability.
- ✅ Dividend yield of 1.50% provides steady investor returns.
- ✅ Book value (758 ₹) is close to current price, showing fair valuation.
- ✅ DII holdings increased (+0.43%), reflecting domestic investor confidence.
- ✅ Low debt-to-equity ratio (0.18) ensures financial stability.
Limitation
- ⚠️ High P/E (31.4) compared to industry PE (23.1), suggesting premium valuation.
- ⚠️ ROCE (4.06%) and ROE (3.17%) are weak, showing inefficient capital use.
- ⚠️ PEG ratio (-2.03) indicates poor growth prospects relative to valuation.
- ⚠️ RSI at 48.2 and MACD at -3.36 reflect neutral-to-bearish momentum.
- ⚠️ Volumes below average show limited trader interest.
Company Negative News
- 📉 Quarterly PAT declined sharply (85.3 Cr. → 48 Cr.).
- 📉 FII holdings decreased (-0.36%), showing reduced foreign investor confidence.
Company Positive News
- 📈 Dividend yield of 1.50% supports investor returns.
- 📈 Stock trading near 50 DMA shows short-term support.
- 📈 Low debt levels provide financial stability.
Industry
- 🏭 Industry PE is lower (23.1), meaning TATACHEM trades at a premium.
- 🏭 Chemicals sector remains cyclical but supported by industrial demand.
Conclusion
🔎 TATACHEM is a cautious swing trade candidate. Fundamentals remain weak with declining profits and low efficiency, but dividend yield and low debt provide stability. Entry near 720–735 ₹ offers a safer setup, while exits around 800–820 ₹ align with resistance levels. Traders should monitor RSI and MACD closely for signs of reversal before committing further capital.
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