TATASTEEL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | TATASTEEL | Market Cap | 2,37,958 Cr. | Current Price | 191 ₹ | High / Low | 216 ₹ |
| Stock P/E | 15.2 | Book Value | 107 ₹ | Dividend Yield | 1.89 % | ROCE | 12.7 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 194 ₹ | DMA 200 | 177 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.06 % | PAT Qtr | 4,086 Cr. | PAT Prev Qtr | 4,360 Cr. |
| RSI | 43.8 | MACD | -2.25 | Volume | 3,19,43,902 | Avg Vol 1Wk | 4,07,75,104 |
| Low price | 124 ₹ | High price | 216 ₹ | PEG Ratio | -0.63 | Debt to equity | 0.52 |
| 52w Index | 71.8 % | Qtr Profit Var | 2.45 % | EPS | 11.7 ₹ | Industry PE | 19.6 |
Analysis: Tata Steel (TATASTEEL) shows moderate potential for swing trading. The RSI at 43.8 is neutral, while the MACD (-2.25) reflects mild bearish momentum. The current price (₹191) is slightly below the 50 DMA (₹194) but above the 200 DMA (₹177), indicating short-term weakness but long-term support. Fundamentals are decent: EPS of ₹11.7, ROCE (12.7%), and ROE (10.9%) show moderate efficiency. Valuation is fair with a P/E of 15.2 compared to industry average of 19.6, making the stock relatively undervalued. Dividend yield of 1.89% adds investor appeal. Quarterly profit declined slightly (₹4,086 Cr vs. ₹4,360 Cr), but overall profitability remains strong. Institutional confidence is stable, with FII (+0.20%) and DII (+0.06%) holdings increasing.
Optimal Entry Price: Around ₹185–190, closer to support levels near 200 DMA.
Exit Strategy (if already holding): Consider exiting near ₹205–210 if momentum recovers, or cut losses if price falls below ₹185.
✅ Positive
- EPS of ₹11.7 supports earnings base.
- ROCE (12.7%) and ROE (10.9%) show moderate efficiency.
- P/E (15.2) lower than industry average (19.6), indicating undervaluation.
- Dividend yield of 1.89% provides steady returns.
- Institutional holdings increased (FII +0.20%, DII +0.06%).
⚠️ Limitation
- Quarterly profit declined slightly (₹4,086 Cr vs. ₹4,360 Cr).
- MACD negative (-2.25), showing mild bearish momentum.
- Debt-to-equity ratio of 0.52 indicates moderate leverage.
📰 Company Negative News
- Marginal decline in quarterly profits impacts sentiment.
- Debt levels remain moderate, limiting flexibility.
🌟 Company Positive News
- Stable profitability with strong EPS.
- Dividend yield supports investor interest.
- Institutional investors increased holdings, signaling confidence.
🏦 Industry
- Steel sector PE (19.6) is higher than Tata Steel’s PE (15.2), making the stock relatively undervalued.
- Industry supported by infrastructure demand and global steel consumption, though cyclical risks remain.
📌 Conclusion
Tata Steel is a moderately good candidate for swing trading with fair valuation, stable fundamentals, and long-term support. Entry near ₹185–190 offers better risk-reward. Exit near ₹205–210 if momentum recovers, or below ₹185 to protect capital.