TATACONSUM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | TATACONSUM | Market Cap | 1,14,248 Cr. | Current Price | 1,153 ₹ | High / Low | 1,221 ₹ |
| Stock P/E | 75.1 | Book Value | 174 ₹ | Dividend Yield | 0.72 % | ROCE | 10.0 % |
| ROE | 7.84 % | Face Value | 1.00 ₹ | DMA 50 | 1,161 ₹ | 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 | 49.0 | MACD | -11.7 | Volume | 11,66,050 | Avg Vol 1Wk | 18,56,784 |
| Low price | 930 ₹ | High price | 1,221 ₹ | PEG Ratio | 7.58 | Debt to equity | 0.05 |
| 52w Index | 76.5 % | Qtr Profit Var | -46.1 % | EPS | 16.1 ₹ | Industry PE | 13.9 |
📊 TATACONSUM shows moderate potential for swing trading. The stock is trading close to its 50 DMA (1,161 ₹) and slightly above its 200 DMA (1,126 ₹), indicating consolidation. RSI at 49.0 suggests neutral momentum, while MACD at -11.7 reflects mild bearish sentiment. Valuation is expensive with a P/E of 75.1 compared to the industry average of 13.9, and PEG ratio of 7.58 signals overvaluation relative to growth. Fundamentals are modest with ROCE at 10.0% and ROE at 7.84%. Quarterly PAT growth has slowed (-46.1%), raising caution. However, strong DII inflows (+1.26%) and stable financial structure provide some support.
✅ Optimal Entry Price: Around 1,130–1,145 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 1,200–1,215 ₹ resistance zone, or exit if price falls below 1,120 ₹ support.
Positive
- DII holdings increased (+1.26%), showing domestic institutional support
- Low debt-to-equity ratio (0.05), reflecting financial stability
- Dividend yield of 0.72% provides passive income
- EPS of 16.1 ₹ supports earnings base
Limitation
- High P/E ratio (75.1) compared to industry average (13.9)
- PEG ratio (7.58) suggests significant overvaluation
- Weak return ratios with ROCE (10.0%) and ROE (7.84%)
- MACD negative (-11.7), showing bearish sentiment
Company Negative News
- Quarterly PAT growth slowed (-46.1%)
- FII holdings decreased (-0.88%), showing reduced foreign investor confidence
Company Positive News
- Quarterly PAT improved sequentially (307 Cr vs 285 Cr)
- DII inflows indicate domestic investor trust
- Stock trading near 52-week highs (1,221 ₹), reflecting investor confidence
Industry
- Consumer goods sector remains resilient with steady demand
- Industry PE at 13.9, showing TATACONSUM trades at a premium
- Sector outlook supported by rising consumption and brand strength
Conclusion
⚖️ TATACONSUM is a cautious candidate for swing trading. Entry near 1,130–1,145 ₹ offers a favorable risk-reward setup, while profit booking should be considered around 1,200–1,215 ₹. High valuation and weak return ratios limit upside, but strong DII support and sector resilience provide near-term stability.