TATACHEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.7
| Stock Code | TATACHEM | Market Cap | 16,227 Cr. | Current Price | 637 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 24.3 | Book Value | 739 ₹ | Dividend Yield | 1.73 % | ROCE | 3.67 % |
| ROE | 2.81 % | Face Value | 10.0 ₹ | DMA 50 | 713 ₹ | DMA 200 | 815 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 0.23 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 21.5 | MACD | -18.0 | Volume | 4,51,869 | Avg Vol 1Wk | 5,36,145 |
| Low price | 634 ₹ | High price | 1,027 ₹ | PEG Ratio | -1.99 | Debt to equity | 0.11 |
| 52w Index | 0.71 % | Qtr Profit Var | 18.4 % | EPS | 26.4 ₹ | Industry PE | 15.2 |
Analysis: Tata Chemicals (TATACHEM) shows weak potential for swing trading at present. The RSI at 21.5 indicates oversold conditions, but the MACD (-18.0) reflects bearish momentum. The current price (₹637) is well below both the 50 DMA (₹713) and 200 DMA (₹815), signaling short-term and long-term weakness. Quarterly profit dropped sharply (₹85.3 Cr vs. ₹178 Cr), and return ratios are poor (ROCE 3.67%, ROE 2.81%). The PEG ratio (-1.99) suggests negative growth expectations. On the positive side, debt-to-equity is low (0.11), dividend yield is decent (1.73%), and EPS of ₹26.4 provides some earnings support. However, FII holdings decreased (-1.47%), showing reduced foreign confidence.
Optimal Entry Price: Around ₹620–630, near support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹700–720 if momentum recovers, or cut losses if price falls below ₹620.
✅ Positive
- Low debt-to-equity ratio (0.11) shows financial stability.
- Dividend yield of 1.73% provides steady returns.
- EPS of ₹26.4 supports earnings base.
- DII holdings increased (+0.23%), reflecting domestic investor confidence.
⚠️ Limitation
- Quarterly profit declined sharply (₹85.3 Cr vs. ₹178 Cr).
- Weak return ratios (ROCE 3.67%, ROE 2.81%).
- PEG ratio (-1.99) suggests negative growth outlook.
- Price below both 50 DMA and 200 DMA reflects bearish trend.
📰 Company Negative News
- Sharp decline in quarterly profits impacts sentiment.
- FII holdings decreased (-1.47%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Dividend yield of 1.73% supports investor interest.
- Low debt levels provide financial resilience.
- DII participation increased, signaling domestic support.
🏦 Industry
- Chemical sector PE (15.2) is lower than Tata Chemicals’ PE (24.3), making the stock relatively expensive.
- Industry supported by demand in specialty chemicals and agriculture, though margins remain under pressure.
📌 Conclusion
Tata Chemicals is a weak candidate for swing trading due to declining profits, weak return ratios, and bearish technicals. Entry near ₹620–630 offers limited rebound potential. Exit near ₹700–720 if momentum recovers, or below ₹620 to protect capital.