TATACOMM - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.2

📊 TATACOMM presents a cautious outlook for swing trading. The stock is priced at ₹1,815, hovering around its 50 DMA (₹1,817) and above its 200 DMA (₹1,740), suggesting neutral-to-mild support. RSI (43.3) is near oversold territory, while MACD (-13.0) indicates bearish momentum. Fundamentals are stretched with a very high P/E (96.7 vs industry 51.2) and negative PEG (-4.96), while profitability remains modest (ROCE 6.39%, ROE 5.93%). Strong 52-week performance (+73.5%) and rising DII holdings (+4.20%) provide some support, but weak efficiency metrics limit upside potential.

✅ Optimal Entry Price: Around ₹1,770–1,800, closer to support levels.

🚪 Exit Strategy: If already holding, consider exiting near ₹1,900–1,950 (resistance zone) or on weakness below ₹1,750.

Positive

• 💡 Strong 52-week gain (+73.5%) highlights momentum in the past year.
• 💡 DII holdings increased (+4.20%), showing domestic institutional confidence.
• 💡 Dividend yield of 1.40% provides steady income.
• 💡 PAT growth (+26.6%) shows improving quarterly performance.

Limitation

• ⚠️ Extremely high P/E (96.7) compared to industry average (51.2).
• ⚠️ Negative PEG (-4.96) suggests unattractive growth-adjusted valuation.
• ⚠️ Low ROCE (6.39%) and ROE (5.93%) highlight weak capital efficiency.
• ⚠️ FII holdings decreased (-3.56%), showing reduced foreign investor confidence.

Company Negative News

• 📉 Valuation stretched with P/E far above peers.
• 📉 Weak technical indicators with MACD negative and RSI near oversold.

Company Positive News

• 📈 PAT improved from ₹136 Cr. to ₹155 Cr. in the last quarter.
• 📈 DII holdings increased, reflecting domestic institutional support.
• 📈 Dividend yield adds investor appeal.

Industry

• 🏭 Industry P/E at 51.2 highlights TATACOMM’s premium valuation.
• 🏭 Telecom & digital infrastructure sector remains in demand, supporting long-term growth potential.

Conclusion

🔎 TATACOMM is a weak-to-moderate candidate for swing trading. Entry near ₹1,770–1,800 offers limited risk, but upside is capped around ₹1,900–1,950 due to stretched valuations and weak efficiency metrics. Best suited for cautious traders seeking short-term rebounds rather than aggressive momentum plays.

I can also outline stop-loss and trailing exit levels to refine TATACOMM’s swing trade plan if you’d like.