TATAELXSI - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | TATAELXSI | Market Cap | 25,171 Cr. | Current Price | 4,039 ₹ | High / Low | 6,735 ₹ |
| Stock P/E | 39.9 | Book Value | 434 ₹ | Dividend Yield | 1.86 % | ROCE | 36.3 % |
| ROE | 29.3 % | Face Value | 10.0 ₹ | DMA 50 | 4,780 ₹ | DMA 200 | 5,385 ₹ |
| Chg in FII Hold | -3.97 % | Chg in DII Hold | 1.91 % | PAT Qtr | 159 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 25.9 | MACD | -238 | Volume | 3,80,455 | Avg Vol 1Wk | 4,27,931 |
| Low price | 4,022 ₹ | High price | 6,735 ₹ | PEG Ratio | 3.15 | Debt to equity | 0.06 |
| 52w Index | 0.65 % | Qtr Profit Var | -20.0 % | EPS | 93.2 ₹ | Industry PE | 20.8 |
Analysis: Tata Elxsi (TATAELXSI) shows weak to moderate potential for swing trading. The RSI at 25.9 indicates oversold conditions, suggesting possible rebound opportunities. However, the MACD (-238) reflects strong bearish momentum. The current price (₹4,039) is well below both the 50 DMA (₹4,780) and 200 DMA (₹5,385), signaling short-term and long-term weakness. Quarterly profit declined (-20%), and valuation is expensive with a P/E of 39.9 compared to industry average of 20.8. On the positive side, EPS of ₹93.2 is strong, return ratios are excellent (ROCE 36.3%, ROE 29.3%), debt-to-equity is low (0.06), and DII holdings increased (+1.91%). However, FII holdings decreased significantly (-3.97%), showing reduced foreign confidence.
Optimal Entry Price: Around ₹4,000–4,050, near current support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹4,600–4,800 if momentum recovers, or cut losses if price falls below ₹4,000.
✅ Positive
- Strong EPS of ₹93.2 supports earnings base.
- Excellent return ratios (ROCE 36.3%, ROE 29.3%).
- Low debt-to-equity ratio (0.06) shows financial stability.
- DII holdings increased (+1.91%), reflecting domestic investor confidence.
- Dividend yield of 1.86% provides steady returns.
⚠️ Limitation
- Quarterly profit declined (-20%).
- High P/E (39.9) compared to industry average (20.8).
- MACD negative (-238), showing strong bearish momentum.
- Price trading below both 50 DMA and 200 DMA reflects weakness.
📰 Company Negative News
- Decline in quarterly profits impacts sentiment.
- FII holdings decreased significantly (-3.97%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Strong fundamentals with excellent ROCE and ROE.
- DII participation increased, signaling domestic support.
- Dividend yield of 1.86% supports investor interest.
🏦 Industry
- IT design & engineering sector PE (20.8) is lower than Tata Elxsi’s PE (39.9), making the stock relatively expensive.
- Industry supported by demand for digital engineering and design services, though competition and margin pressures remain.
📌 Conclusion
Tata Elxsi is a weak to moderate candidate for swing trading with strong fundamentals but bearish technicals and high valuation. Entry near ₹4,000–4,050 offers better risk-reward. Exit near ₹4,600–4,800 if momentum recovers, or below ₹4,000 to protect capital.