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TATACOMM - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 19 Jun 26, 11:28 am

Here’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.

Would you like me to extend this into a technical chart outlook, a peer comparison, or a short-term forecast to refine your swing trade strategy?

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