⚠ 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.
TATACOMM - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for TATACOMM based on the provided parameters
Swing Trade Rating: 3.6
| Stock Code | TATACOMM | Market Cap | 55,324 Cr. | Current Price | 1,942 ₹ | High / Low | 2,050 ₹ |
| Stock P/E | 72.1 | Book Value | 371 ₹ | Dividend Yield | 0.90 % | ROCE | 8.64 % |
| ROE | 7.30 % | Face Value | 10.0 ₹ | DMA 50 | 1,778 ₹ | DMA 200 | 1,693 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.65 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 306 Cr. |
| RSI | 59.2 | MACD | 61.0 | Volume | 8,32,221 | Avg Vol 1Wk | 6,26,082 |
| Low price | 1,322 ₹ | High price | 2,050 ₹ | PEG Ratio | -22.7 | Debt to equity | 0.52 |
| 52w Index | 85.2 % | Qtr Profit Var | 57.4 % | EPS | 27.9 ₹ | Industry PE | 40.8 |
📈 Optimal Entry Price: Around 1,850–1,900 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 2,020–2,050 ₹ resistance zone. A stop-loss can be placed below 1,820 ₹.
Positive
- ✅ EPS of 27.9 ₹ supports earnings visibility.
- ✅ Dividend yield of 0.90% provides steady investor returns.
- ✅ DII holdings increased (+0.65%), reflecting domestic institutional confidence.
- ✅ Stock trading above both 50 DMA (1,778 ₹) and 200 DMA (1,693 ₹), confirming bullish technical trend.
- ✅ Strong trading volumes above weekly average show active participation.
Limitation
- ⚠️ High P/E (72.1) compared to industry PE (40.8), suggesting premium valuation.
- ⚠️ PEG ratio (-22.7) indicates poor growth prospects relative to valuation.
- ⚠️ ROCE (8.64%) and ROE (7.30%) are weak, showing inefficient capital use.
- ⚠️ Quarterly PAT declined sharply (306 Cr. → 172 Cr.).
- ⚠️ FII holdings decreased (-0.02%), showing reduced foreign investor confidence.
Company Negative News
- 📉 PAT decline highlights earnings pressure.
- 📉 Premium valuation compared to peers limits upside potential.
- 📉 Weak profitability metrics reduce attractiveness for long-term investors.
Company Positive News
- 📈 Dividend yield supports investor returns.
- 📈 Stock trading above DMA levels shows strong technical strength.
- 📈 DII holdings increased, reflecting domestic institutional support.
Industry
- 🏭 Industry PE is 40.8, TATACOMM trades at a premium (72.1).
- 🏭 Telecom and digital infrastructure sector remains structurally strong with rising demand for connectivity and cloud services.
- 🏭 Sector outlook supported by digital transformation and enterprise solutions growth.
Conclusion
🔎 TATACOMM is a fair candidate for swing trading, supported by dividend yield, short-term technical strength, and domestic institutional interest. However, weak profitability, premium valuation, and declining profits limit upside potential. Entry near 1,850–1,900 ₹ and exit around 2,020–2,050 ₹ provide a tactical swing trade setup.
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