TATATECH - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | TATATECH | Market Cap | 26,377 Cr. | Current Price | 650 ₹ | High / Low | 803 ₹ |
| Stock P/E | 38.1 | Book Value | 39.2 ₹ | Dividend Yield | 1.28 % | ROCE | 66.9 % |
| ROE | 58.6 % | Face Value | 2.00 ₹ | DMA 50 | 659 ₹ | DMA 200 | 705 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.04 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 48.7 | MACD | -2.02 | Volume | 9,17,398 | Avg Vol 1Wk | 7,63,288 |
| Low price | 595 ₹ | High price | 803 ₹ | PEG Ratio | 0.67 | Debt to equity | 0.05 |
| 52w Index | 26.6 % | Qtr Profit Var | 30.8 % | EPS | 13.7 ₹ | Industry PE | 25.9 |
📊 Based on the given parameters, TATATECH shows strong fundamentals with high ROCE and ROE, low debt, and consistent profit growth. However, the stock is trading below its 200 DMA, with neutral RSI and negative MACD, suggesting cautious entry. It is a moderately good candidate for swing trading.
✅ Optimal Entry Price: Around 620–630 ₹ (near support levels, slightly above recent low of 595 ₹)
🚪 Exit Strategy: If already holding, consider booking profits near 700–720 ₹ (resistance zone close to 200 DMA).
Positive
- High ROCE (66.9%) and ROE (58.6%) indicate strong efficiency.
- Low debt-to-equity (0.05) ensures financial stability.
- Quarterly PAT growth (135 Cr vs 133 Cr) shows consistency.
- PEG ratio of 0.67 suggests undervaluation relative to growth.
- Healthy trading volume above weekly average indicates liquidity.
Limitation
- Stock P/E (38.1) is higher than industry average (25.9), making it relatively expensive.
- Price below 200 DMA (705 ₹) signals medium-term weakness.
- MACD negative (-2.02) shows bearish momentum.
- RSI at 48.7 is neutral, not strongly oversold.
Company Negative News
- No major negative news reported, but valuation concerns remain due to high P/E.
Company Positive News
- Strong quarterly profit growth (30.8% variation).
- Increase in FII and DII holdings indicates institutional confidence.
Industry
- Industry PE at 25.9 is lower, suggesting sector is moderately valued.
- Technology sector remains in growth phase with demand for digital engineering services.
Conclusion
⚖️ TATATECH is a fundamentally strong company with excellent returns and growth prospects. For swing trading, entry near 620–630 ₹ offers a favorable risk-reward ratio. Exit should be considered near 700–720 ₹ unless momentum strengthens. Short-term caution is advised due to technical weakness, but medium-term outlook remains positive.