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TATAELXSI - Swing Trade Analysis with AI Signals

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Rating: 3.8

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

Here’s the structured swing trade analysis for TATAELXSI based on the provided parameters

Swing Trade Rating: 3.8

Stock Code TATAELXSI Market Cap 25,648 Cr. Current Price 4,116 ₹ High / Low 6,534 ₹
Stock P/E 36.9 Book Value 488 ₹ Dividend Yield 1.82 % ROCE 30.0 %
ROE 23.6 % Face Value 10.0 ₹ DMA 50 4,275 ₹ DMA 200 4,877 ₹
Chg in FII Hold 2.52 % Chg in DII Hold -0.89 % PAT Qtr 220 Cr. PAT Prev Qtr 159 Cr.
RSI 44.0 MACD -48.2 Volume 3,28,659 Avg Vol 1Wk 2,22,617
Low price 3,945 ₹ High price 6,534 ₹ PEG Ratio -13.3 Debt to equity 0.05
52w Index 6.61 % Qtr Profit Var 27.8 % EPS 101 ₹ Industry PE 21.0

📈 Optimal Entry Price: Around 4,050–4,100 ₹ (near support zone)

📉 Exit Strategy: If already holding, consider profit booking near 4,400–4,500 ₹ resistance zone. A stop-loss can be placed below 3,950 ₹.

Positive

  • ✅ Strong ROCE (30.0%) and ROE (23.6%) highlight operational efficiency.
  • ✅ EPS of 101 ₹ supports earnings strength.
  • ✅ Dividend yield of 1.82% provides steady investor returns.
  • ✅ Quarterly PAT improved to 220 Cr. from 159 Cr. (+27.8% growth).
  • ✅ FII holdings increased (+2.52%), showing foreign investor confidence.
  • ✅ Low debt-to-equity ratio (0.05) ensures financial stability.

Limitation

  • ⚠️ Current price (4,116 ₹) below both 50 DMA (4,275 ₹) and 200 DMA (4,877 ₹), showing technical weakness.
  • ⚠️ RSI at 44.0 and MACD at -48.2 reflect bearish momentum.
  • ⚠️ PEG ratio (-13.3) indicates poor growth prospects relative to valuation.
  • ⚠️ DII holdings decreased (-0.89%), showing reduced domestic institutional support.
  • ⚠️ 52-week index at 6.61% reflects significant underperformance relative to highs.

Company Negative News

  • 📉 Stock trading near 52-week low zone.
  • 📉 Weak technical indicators (RSI and MACD) suggest short-term downside risk.
  • 📉 Domestic institutional selling pressure.

Company Positive News

  • 📈 Quarterly profit growth (+27.8%) supports earnings momentum.
  • 📈 Strong efficiency metrics (ROCE and ROE).
  • 📈 Foreign investor confidence reflected in increased FII holdings.

Industry

  • 🏭 Industry PE is 21.0, TATAELXSI trades at 36.9 — premium valuation.
  • 🏭 IT and design services sector benefits from rising demand in automotive, healthcare, and digital transformation.
  • 🏭 Sector outlook remains positive with global outsourcing trends.

Conclusion

🔎 TATAELXSI is a moderate swing trade candidate with strong fundamentals and foreign investor support. However, weak technicals and premium valuation limit short-term upside. Entry near 4,050–4,100 ₹ offers a safer setup, with exits around 4,400–4,500 ₹ advisable unless momentum improves significantly.

Would you like me to extend this into a peer comparison with Infosys, LTTS, and Persistent Systems to benchmark valuation and momentum?

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