TATATECH - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | TATATECH | Market Cap | 21,210 Cr. | Current Price | 522 ₹ | High / Low | 797 ₹ |
| Stock P/E | 30.7 | Book Value | 39.2 ₹ | Dividend Yield | 1.60 % | ROCE | 66.9 % |
| ROE | 58.6 % | Face Value | 2.00 ₹ | DMA 50 | 599 ₹ | DMA 200 | 673 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.04 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 29.8 | MACD | -23.0 | Volume | 14,13,801 | Avg Vol 1Wk | 15,91,752 |
| Low price | 520 ₹ | High price | 797 ₹ | PEG Ratio | 0.54 | Debt to equity | 0.05 |
| 52w Index | 0.90 % | Qtr Profit Var | 30.8 % | EPS | 13.7 ₹ | Industry PE | 21.9 |
Analysis: Tata Technologies (TATATECH) shows moderate to strong potential for swing trading. The RSI at 29.8 indicates oversold conditions, suggesting possible rebound opportunities. The MACD (-23.0) reflects bearish momentum, but the current price (₹522) is near support levels (₹520 low). The stock is trading below both the 50 DMA (₹599) and 200 DMA (₹673), signaling short-term weakness. Fundamentals are strong: EPS of ₹13.7, ROCE (66.9%), and ROE (58.6%) highlight excellent efficiency. Valuation is fair with a P/E of 30.7 compared to industry average of 21.9, slightly expensive but supported by strong growth. The PEG ratio (0.54) suggests attractive valuation relative to growth. Institutional confidence is stable, with FII (+0.26%) and DII (+0.04%) holdings increasing.
Optimal Entry Price: Around ₹515–525, near current support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹580–600 if momentum recovers, or cut losses if price falls below ₹510.
✅ Positive
- Strong EPS of ₹13.7 supports earnings base.
- Excellent return ratios (ROCE 66.9%, ROE 58.6%).
- PEG ratio of 0.54 suggests attractive growth potential.
- Dividend yield of 1.60% provides steady returns.
- Institutional holdings increased (FII +0.26%, DII +0.04%).
⚠️ Limitation
- Price trading below both 50 DMA and 200 DMA reflects bearish trend.
- MACD negative (-23.0), showing weak momentum.
- P/E (30.7) higher than industry average (21.9), indicating relative expensiveness.
📰 Company Negative News
- Stock trading near 52-week low (₹520 vs. high ₹797).
- Bearish technical indicators limit short-term upside.
🌟 Company Positive News
- Quarterly profit growth (+30.8%) shows strong improvement.
- Excellent efficiency reflected in ROCE and ROE.
- Dividend yield supports investor interest.
- Institutional investors increased holdings, signaling confidence.
🏦 Industry
- Engineering services sector PE (21.9) is lower than Tata Technologies’ PE (30.7), making the stock slightly expensive.
- Industry supported by demand for digital engineering, automotive R&D, and technology services.
📌 Conclusion
Tata Technologies is a moderately good candidate for swing trading with strong fundamentals and attractive growth valuation, but bearish technicals limit short-term upside. Entry near ₹515–525 offers better risk-reward. Exit near ₹580–600 if momentum recovers, or below ₹510 to protect capital.