TATACONSUM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.6

📊 Analysis Summary

TATACONSUM is currently not favorable for swing trading due to weak technical momentum and overvaluation. While the company has shown modest profit growth and institutional buying, its high P/E and bearish indicators suggest limited short-term upside.

✅ Strengths

Quarterly Profit Growth (10.1%): Stable earnings trajectory.

EPS of ₹13.4: Reasonable earnings base.

Low Debt-to-Equity (0.12): Financially sound.

FII Buying (+0.42%): Positive institutional sentiment.

Trading near DMA 200 (₹1,066): Possible support zone.

⚠️ Weaknesses

High P/E (80.1) vs Industry PE (15.5): Severely overvalued.

ROCE (9.16%) & ROE (7.01%): Weak return metrics.

MACD (-10.5): Bearish momentum.

RSI at 40.6: Weak — no sign of reversal.

Volume Below Average: Current volume (9.59L) vs 1-week avg (23.1L).

PEG Ratio (8.54): Indicates expensive growth.

Dividend Yield (0.78%): Low for a consumer stock.

📈 Optimal Entry Price

Wait for Reversal: Entry only if RSI crosses 50 and MACD turns positive. Ideal buy zone: ₹1,045–₹1,060 with volume pickup.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹1,090–₹1,110 Near 50 DMA — short-term resistance.

Stop Loss: ₹1,025 Below recent support — exit if RSI drops below 38 or MACD worsens.

🧠 Final Thoughts

TATACONSUM is a fundamentally stable but technically weak stock for swing trading. Overvaluation and lack of momentum make it risky for short-term trades. Better to wait for technical confirmation or consider alternatives with stronger setups.

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