TATASTEEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | TATASTEEL | Market Cap | 2,43,716 Cr. | Current Price | 195 ₹ | High / Low | 203 ₹ |
| Stock P/E | 15.6 | Book Value | 107 ₹ | Dividend Yield | 1.84 % | ROCE | 12.7 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 182 ₹ | DMA 200 | 168 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | 0.06 % | PAT Qtr | 4,360 Cr. | PAT Prev Qtr | 3,693 Cr. |
| RSI | 59.8 | MACD | 4.20 | Volume | 1,55,98,247 | Avg Vol 1Wk | 3,69,68,581 |
| Low price | 124 ₹ | High price | 203 ₹ | PEG Ratio | -0.65 | Debt to equity | 0.52 |
| 52w Index | 90.2 % | Qtr Profit Var | 21.8 % | EPS | 11.7 ₹ | Industry PE | 21.6 |
📊 TATASTEEL shows strong potential for swing trading. The stock is trading above both its 50 DMA (182 ₹) and 200 DMA (168 ₹), indicating bullish technical momentum. RSI at 59.8 suggests healthy strength without being overbought, while MACD at 4.20 confirms positive sentiment. Valuation is attractive with a P/E of 15.6 compared to the industry average of 21.6, though PEG ratio (-0.65) highlights limited growth prospects. Fundamentals are decent with ROCE at 12.7% and ROE at 10.9%. Quarterly PAT growth (+21.8%) adds confidence, supported by strong trading volumes. Overall, the stock offers a favorable setup for swing trading.
✅ Optimal Entry Price: Around 190–195 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 200–203 ₹ resistance zone, or exit if price falls below 185 ₹ support.
Positive
- Trading above both 50 DMA and 200 DMA, showing bullish technical strength
- Quarterly PAT growth (+21.8%) with strong earnings momentum
- Attractive valuation with P/E (15.6) below industry average (21.6)
- Dividend yield of 1.84% provides passive income
- FII (+0.20%) and DII (+0.06%) holdings increased, showing institutional confidence
Limitation
- PEG ratio (-0.65) indicates weak growth prospects
- Debt-to-equity ratio at 0.52, showing moderate leverage
- Return ratios (ROCE 12.7%, ROE 10.9%) are modest compared to peers
Company Negative News
- Debt levels remain relatively high compared to industry standards
- Growth outlook limited as reflected in negative PEG ratio
Company Positive News
- Quarterly PAT improved (4,360 Cr vs 3,693 Cr)
- Stock trading near 52-week highs (203 ₹), reflecting investor confidence
- Strong institutional support from both FII and DII inflows
Industry
- Steel sector remains cyclical but supported by infrastructure demand
- Industry PE at 21.6, showing TATASTEEL trades at a discount
- Sector outlook supported by global commodity demand and domestic projects
Conclusion
⚖️ TATASTEEL is a good candidate for swing trading with strong technicals and attractive valuation. Entry near 190–195 ₹ offers a favorable risk-reward setup, while profit booking should be considered around 200–203 ₹. Moderate debt and limited growth prospects warrant caution, but strong earnings momentum and sector demand support near-term upside.