TATACONSUM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.0
| Stock Code | TATACONSUM | Market Cap | 1,03,620 Cr. | Current Price | 1,045 ₹ | High / Low | 1,221 ₹ |
| Stock P/E | 68.1 | Book Value | 174 ₹ | Dividend Yield | 0.79 % | ROCE | 10.0 % |
| ROE | 7.84 % | Face Value | 1.00 ₹ | DMA 50 | 1,130 ₹ | DMA 200 | 1,126 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | 1.26 % | PAT Qtr | 307 Cr. | PAT Prev Qtr | 285 Cr. |
| RSI | 31.4 | MACD | -23.7 | Volume | 7,75,692 | Avg Vol 1Wk | 17,42,146 |
| Low price | 950 ₹ | High price | 1,221 ₹ | PEG Ratio | 6.87 | Debt to equity | 0.05 |
| 52w Index | 34.9 % | Qtr Profit Var | -46.1 % | EPS | 16.1 ₹ | Industry PE | 19.2 |
Analysis: Tata Consumer Products (TATACONSUM) shows weak to moderate potential for swing trading. The RSI at 31.4 indicates oversold conditions, but the MACD (-23.7) reflects bearish momentum. The current price (₹1,045) is below both the 50 DMA (₹1,130) and 200 DMA (₹1,126), signaling short-term weakness. Valuation is expensive with a P/E of 68.1 compared to industry average of 19.2, and PEG ratio of 6.87 suggests overvaluation relative to growth. Quarterly profit declined sharply (-46.1%), and return ratios are weak (ROCE 10.0%, ROE 7.84%). On the positive side, EPS of ₹16.1 provides some earnings support, debt-to-equity is low (0.05), and DII holdings increased (+1.26%).
Optimal Entry Price: Around ₹1,020–1,040, closer to support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹1,150–1,180 if momentum recovers, or cut losses if price falls below ₹1,020.
✅ Positive
- EPS of ₹16.1 supports earnings base.
- Low debt-to-equity ratio (0.05) shows financial stability.
- DII holdings increased (+1.26%), reflecting domestic investor confidence.
- Dividend yield of 0.79% provides modest returns.
⚠️ Limitation
- High P/E (68.1) compared to industry average (19.2).
- PEG ratio of 6.87 suggests overvaluation relative to growth.
- Quarterly profit declined sharply (-46.1%).
- Weak return ratios (ROCE 10.0%, ROE 7.84%).
📰 Company Negative News
- Sharp decline in quarterly profits impacts sentiment.
- FII holdings decreased (-0.88%), showing reduced foreign investor confidence.
🌟 Company Positive News
- DII participation increased significantly (+1.26%).
- Low debt levels provide financial resilience.
- Dividend yield supports investor interest.
🏦 Industry
- Consumer goods sector PE (19.2) is far below Tata Consumer’s PE (68.1), making the stock relatively expensive.
- Industry supported by steady demand for FMCG products, though margins remain under pressure due to inflation.
📌 Conclusion
Tata Consumer Products is a weak candidate for swing trading due to high valuation, weak return ratios, and bearish technicals. Entry near ₹1,020–1,040 offers limited rebound potential. Exit near ₹1,150–1,180 if momentum recovers, or below ₹1,020 to protect capital.