TATAELXSI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | TATAELXSI | Market Cap | 34,385 Cr. | Current Price | 5,519 ₹ | High / Low | 6,735 ₹ |
| Stock P/E | 54.5 | Book Value | 434 ₹ | Dividend Yield | 1.36 % | ROCE | 36.3 % |
| ROE | 29.3 % | Face Value | 10.0 ₹ | DMA 50 | 5,398 ₹ | DMA 200 | 5,658 ₹ |
| Chg in FII Hold | -3.97 % | Chg in DII Hold | 1.91 % | PAT Qtr | 159 Cr. | PAT Prev Qtr | 155 Cr. |
| RSI | 54.6 | MACD | 19.8 | Volume | 3,72,664 | Avg Vol 1Wk | 2,54,476 |
| Low price | 4,601 ₹ | High price | 6,735 ₹ | PEG Ratio | 4.30 | Debt to equity | 0.06 |
| 52w Index | 43.0 % | Qtr Profit Var | -20.0 % | EPS | 93.2 ₹ | Industry PE | 24.8 |
📊 TATAELXSI shows good potential for swing trading. The stock is trading above its 50 DMA (5,398 ₹) but slightly below its 200 DMA (5,658 ₹), indicating mixed technical momentum. RSI at 54.6 suggests healthy strength without being overbought, while MACD at 19.8 confirms bullish sentiment. Valuation is expensive with a P/E of 54.5 compared to the industry average of 24.8, and PEG ratio of 4.30 signals overvaluation relative to growth. Fundamentals remain strong with ROCE at 36.3% and ROE at 29.3%, supported by low debt-to-equity (0.06). Quarterly PAT has declined (-20%), which warrants caution, but overall momentum and institutional support from DII inflows (+1.91%) make it a favorable candidate for swing trading.
✅ Optimal Entry Price: Around 5,450–5,500 ₹ (near 50 DMA support)
🚪 Exit Strategy: If already holding, consider booking profits near 5,650–5,700 ₹ resistance zone, or exit if price falls below 5,350 ₹ support.
Positive
- Strong ROCE (36.3%) and ROE (29.3%) indicate excellent efficiency
- MACD positive (19.8), confirming bullish momentum
- DII holdings increased (+1.91%), showing domestic institutional confidence
- EPS of 93.2 ₹ supports earnings strength
- Low debt-to-equity ratio (0.06), reflecting financial stability
Limitation
- High P/E ratio (54.5) compared to industry average (24.8)
- PEG ratio (4.30) suggests overvaluation relative to growth
- Stock trading below 200 DMA, showing limited long-term momentum
- Dividend yield at 1.36% is modest
Company Negative News
- Quarterly PAT declined (159 Cr vs 155 Cr, -20% variation)
- FII holdings decreased (-3.97%), showing reduced foreign investor confidence
Company Positive News
- Strong fundamentals with high ROCE and ROE
- DII inflows indicate domestic investor trust
- Stock trading above 50 DMA, showing short-term technical support
Industry
- IT and design services sector remains in growth phase
- Industry PE at 24.8, showing TATAELXSI trades at a premium
- Sector outlook supported by digital transformation and innovation demand
Conclusion
⚖️ TATAELXSI is a good candidate for swing trading with strong fundamentals and bullish short-term momentum. Entry near 5,450–5,500 ₹ offers a favorable risk-reward setup, while profit booking should be considered around 5,650–5,700 ₹. High valuation and declining profits limit upside, but strong efficiency ratios and sector resilience support near-term opportunities.