TATAELXSI - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📉 Current Price: ₹5,377

📊 Optimal Entry Price: ₹5,300–5,350 (near RSI support and recent consolidation)

📈 Suggested Exit (if holding): ₹5,550–5,600 (approaching 50 DMA resistance)

🔷 Positive

• 📈 Strong ROCE & ROE: ROCE at 36.3% and ROE at 29.3% indicate excellent capital efficiency
• 📉 Low Debt: Debt-to-equity ratio of 0.06 reflects a healthy balance sheet
• 📈 DII Buying: Domestic institutional holding increased by 0.58%
• 📈 EPS Strength: ₹108 supports long-term valuation
• 📈 Dividend Yield: 1.39% adds to investor appeal

⚠️ Limitation

• 📉 MACD Negative: -7.98 indicates bearish momentum
• 📉 RSI at 43.3: Neutral to weak zone, lacks a clear reversal signal
• 📉 Below DMA Levels: Price trading below both 50 DMA (₹5,537) and 200 DMA (₹5,947)
• 📉 High P/E: 49.9 vs industry average of 29.7 suggests overvaluation
• 📉 Elevated PEG Ratio: 3.94 implies expensive valuation relative to growth

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 0.21%
• 📉 Quarterly Profit Drop: PAT fell 32.5% QoQ despite a sequential increase from ₹144 Cr to ₹155 Cr

✅ Company Positive News

• 🚗 EV & Design Focus: Continued traction in automotive design, AI, and embedded systems
• 📈 Resilient Earnings: PAT improved sequentially, showing signs of recovery

🏭 Industry

• 💡 Tech & Design Services Sector: Supported by digital transformation, EV innovation, and global outsourcing
• 📉 Valuation Sensitivity: Sector trades at high multiples, vulnerable to earnings volatility

🧾 Conclusion

TATAELXSI offers a moderate swing trade opportunity with strong fundamentals and sector relevance. However, technical weakness and valuation concerns suggest caution. Entry near ₹5,300–5,350 is ideal, with exit near ₹5,550–5,600. Monitor MACD and RSI for confirmation before initiating trades.

I can chart TATAELXSI’s price action with support and resistance zones to help you time your trade more precisely.