TATACOMM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | TATACOMM | Market Cap | 44,638 Cr. | Current Price | 1,565 ₹ | High / Low | 2,004 ₹ |
| Stock P/E | 63.2 | Book Value | 355 ₹ | Dividend Yield | 1.60 % | ROCE | 6.39 % |
| ROE | 5.93 % | Face Value | 10.0 ₹ | DMA 50 | 1,712 ₹ | DMA 200 | 1,729 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | -0.54 % | PAT Qtr | 306 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 33.9 | MACD | -60.2 | Volume | 1,39,383 | Avg Vol 1Wk | 4,28,602 |
| Low price | 1,291 ₹ | High price | 2,004 ₹ | PEG Ratio | -3.24 | Debt to equity | 0.55 |
| 52w Index | 38.5 % | Qtr Profit Var | 127 % | EPS | 46.4 ₹ | Industry PE | 39.0 |
📊 TATACOMM shows limited potential for swing trading at present. The stock is trading below both its 50 DMA (1,712 ₹) and 200 DMA (1,729 ₹), indicating weak technical momentum. RSI at 33.9 suggests the stock is nearing oversold territory, while MACD at -60.2 confirms strong bearish sentiment. Valuation is expensive with a P/E of 63.2 compared to the industry average of 39.0, and PEG ratio (-3.24) highlights poor growth prospects relative to valuation. Fundamentals are weak with ROCE at 6.39% and ROE at 5.93%, though quarterly PAT growth (+127%) provides some optimism. Overall, the stock may offer short-term rebound opportunities but remains risky for swing trading.
✅ Optimal Entry Price: Around 1,520–1,540 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 1,680–1,700 ₹ resistance zone, or exit if price falls below 1,500 ₹ support.
Positive
- Quarterly PAT growth of 127% (306 Cr vs 155 Cr)
- Dividend yield of 1.60% provides passive income
- FII holdings increased (+0.85%), showing foreign investor confidence
- EPS of 46.4 ₹ supports earnings base
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak technical trend
- High P/E ratio (63.2) compared to industry average (39.0)
- PEG ratio (-3.24) indicates poor growth prospects
- Low ROCE (6.39%) and ROE (5.93%), reflecting weak efficiency
- DII holdings decreased (-0.54%), showing reduced domestic institutional support
Company Negative News
- Weak return ratios compared to peers
- Stock trading near lower end of 52-week index (38.5%)
Company Positive News
- Strong quarterly profit growth
- FII inflows indicate foreign investor trust
- Dividend yield supports investor returns
Industry
- Telecom and digital infrastructure sector remains in growth phase
- Industry PE at 39.0, showing TATACOMM trades at a premium
- Sector outlook supported by rising demand for connectivity and cloud services
Conclusion
⚖️ TATACOMM is a cautious candidate for swing trading. Entry near 1,520–1,540 ₹ may offer a short-term rebound, while profit booking should be considered around 1,680–1,700 ₹. Weak technicals and stretched valuation limit upside, but strong quarterly earnings and dividend yield provide some support.