TATAELXSI - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:02 am
Back to Swing Trade ListSwing Trade Rating: 3.5
| Stock Code | TATAELXSI | Market Cap | 33,716 Cr. | Current Price | 5,412 ₹ | High / Low | 7,325 ₹ |
| Stock P/E | 50.3 | Book Value | 434 ₹ | Dividend Yield | 1.43 % | ROCE | 36.3 % |
| ROE | 29.3 % | Face Value | 10.0 ₹ | DMA 50 | 5,249 ₹ | DMA 200 | 5,737 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.58 % | PAT Qtr | 155 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 41.4 | MACD | -86.8 | Volume | 1,12,393 | Avg Vol 1Wk | 94,312 |
| Low price | 4,601 ₹ | High price | 7,325 ₹ | PEG Ratio | 3.97 | Debt to equity | 0.06 |
| 52w Index | 29.8 % | Qtr Profit Var | -32.5 % | EPS | 108 ₹ | Industry PE | 26.4 |
📊 TATAELXSI presents a moderately favorable outlook for swing trading. The stock is priced at ₹5,412, trading above its 50 DMA (₹5,249) but below its 200 DMA (₹5,737), showing mixed technical signals. RSI (41.4) is near oversold territory, while MACD (-86.8) indicates bearish momentum. Fundamentals remain strong with ROCE (36.3%) and ROE (29.3%), supported by consistent profitability (PAT ₹155 Cr. vs ₹144 Cr. previous quarter). However, valuations are stretched with a P/E of 50.3 vs industry 26.4 and PEG ratio of 3.97, limiting upside potential.
✅ Optimal Entry Price: Around ₹5,250–5,300, near 50 DMA support.
🚪 Exit Strategy: If already holding, consider exiting near ₹5,700–5,800 (resistance zone) or on weakness below ₹5,200.
Positive
- 💡 Strong ROCE (36.3%) and ROE (29.3%) highlight excellent capital efficiency.
- 💡 EPS of ₹108 supports strong earnings base.
- 💡 DII holdings increased (+0.58%), showing domestic institutional confidence.
- 💡 Low debt-to-equity (0.06) ensures financial stability.
Limitation
- ⚠️ High P/E (50.3) compared to industry average (26.4).
- ⚠️ PEG ratio of 3.97 suggests stretched growth-adjusted valuation.
- ⚠️ Trading below 200 DMA signals medium-term weakness.
- ⚠️ Quarterly profit variation (-32.5%) raises concerns about earnings stability.
Company Negative News
- 📉 PAT variation (-32.5%) indicates slowing earnings momentum.
- 📉 FII holdings decreased (-0.21%), showing reduced foreign investor confidence.
Company Positive News
- 📈 PAT improved sequentially from ₹144 Cr. to ₹155 Cr.
- 📈 DII holdings increased, reflecting domestic institutional support.
- 📈 Dividend yield of 1.43% adds investor appeal.
Industry
- 🏭 Industry P/E at 26.4 highlights TATAELXSI’s premium valuation.
- 🏭 Technology & design services sector remains in demand, supported by digital transformation trends.
Conclusion
🔎 TATAELXSI is a moderately suitable candidate for swing trading. Entry near ₹5,250–5,300 offers a favorable setup, while upside is capped around ₹5,700–5,800 due to stretched valuations and weak technicals. Best suited for cautious traders seeking short-term rebounds rather than aggressive momentum plays.
Would you like me to also compare TATAELXSI’s swing trade potential with other IT mid-cap peers to highlight relative opportunities?
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