TATACOMM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | TATACOMM | Market Cap | 41,020 Cr. | Current Price | 1,441 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 58.1 | Book Value | 355 ₹ | Dividend Yield | 1.74 % | ROCE | 6.39 % |
| ROE | 5.93 % | Face Value | 10.0 ₹ | DMA 50 | 1,590 ₹ | DMA 200 | 1,684 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | -0.54 % | PAT Qtr | 306 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 39.0 | MACD | -52.8 | Volume | 2,15,872 | Avg Vol 1Wk | 3,38,387 |
| Low price | 1,377 ₹ | High price | 2,004 ₹ | PEG Ratio | -2.98 | Debt to equity | 0.55 |
| 52w Index | 10.2 % | Qtr Profit Var | 127 % | EPS | 46.4 ₹ | Industry PE | 35.8 |
Analysis: Tata Communications (TATACOMM) shows weak to moderate potential for swing trading. The RSI at 39.0 indicates near-oversold conditions, but the MACD (-52.8) reflects bearish momentum. The current price (₹1,441) is below both the 50 DMA (₹1,590) and 200 DMA (₹1,684), signaling short-term weakness. Quarterly profit improved significantly (₹306 Cr vs. ₹155 Cr, +127%), and EPS of ₹46.4 provides earnings support. However, return ratios are weak (ROCE 6.39%, ROE 5.93%), and the P/E (58.1) is much higher than the industry average (35.8), making the stock expensive. Institutional confidence is mixed, with FII holdings up (+0.85%) but DII holdings down (-0.54%).
Optimal Entry Price: Around ₹1,400–1,420, closer to support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹1,550–1,600 if momentum recovers, or cut losses if price falls below ₹1,400.
✅ Positive
- Quarterly profit growth (+127%) shows strong improvement.
- EPS of ₹46.4 supports earnings base.
- Dividend yield of 1.74% provides steady returns.
- FII holdings increased (+0.85%), reflecting foreign investor confidence.
⚠️ Limitation
- High P/E (58.1) compared to industry average (35.8).
- Weak return ratios (ROCE 6.39%, ROE 5.93%).
- MACD negative, showing bearish momentum.
- Price below both 50 DMA and 200 DMA reflects weakness.
📰 Company Negative News
- Weak return ratios raise concerns about efficiency.
- DII holdings decreased (-0.54%), showing reduced domestic support.
🌟 Company Positive News
- Strong quarterly profit growth (+127%).
- EPS of ₹46.4 reflects earnings strength.
- Dividend yield of 1.74% supports investor interest.
- FII participation increased, signaling foreign confidence.
🏦 Industry
- Telecom & IT services sector PE (35.8) is lower than Tata Communications’ PE (58.1), making the stock relatively expensive.
- Industry supported by digital transformation and enterprise connectivity demand, though margins remain competitive.
📌 Conclusion
Tata Communications is a weak candidate for swing trading at current levels due to bearish technicals and high valuation, despite strong quarterly profit growth. Entry near ₹1,400–1,420 offers better risk-reward. Exit near ₹1,550–1,600 if momentum recovers, or below ₹1,400 to protect capital.