⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATATECH - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for TATATECH based on the provided parameters
Swing Trade Rating: 4.2
| Stock Code | TATATECH | Market Cap | 30,596 Cr. | Current Price | 754 ₹ | High / Low | 784 ₹ |
| Stock P/E | 49.2 | Book Value | 43.5 ₹ | Dividend Yield | 1.11 % | ROCE | 44.0 % |
| ROE | 36.3 % | Face Value | 2.00 ₹ | DMA 50 | 677 ₹ | DMA 200 | 662 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 0.52 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 135 Cr. |
| RSI | 60.3 | MACD | 33.7 | Volume | 8,23,584 | Avg Vol 1Wk | 12,92,231 |
| Low price | 507 ₹ | High price | 784 ₹ | PEG Ratio | 1.34 | Debt to equity | 0.04 |
| 52w Index | 89.0 % | Qtr Profit Var | -16.3 % | EPS | 14.0 ₹ | Industry PE | 24.4 |
📈 Optimal Entry Price: Around 730–750 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 780–790 ₹ resistance zone. A stop-loss can be placed below 715 ₹.
Positive
- ✅ Strong ROCE (44.0%) and ROE (36.3%) highlight excellent efficiency.
- ✅ EPS of 14.0 ₹ supports earnings visibility.
- ✅ Dividend yield of 1.11% provides steady income.
- ✅ FII (+0.26%) and DII (+0.52%) holdings increased, showing institutional confidence.
- ✅ Stock trading well above DMA200 (662 ₹), reflecting bullish technical strength.
- ✅ RSI at 60.3 and MACD at 33.7 indicate strong momentum.
Limitation
- ⚠️ High P/E of 49.2 compared to industry PE of 24.4, suggesting premium valuation.
- ⚠️ PEG ratio of 1.34 indicates valuation stretched relative to growth.
- ⚠️ Quarterly PAT declined (135 Cr. → 120 Cr.), showing earnings pressure.
- ⚠️ Current price near 52-week high (784 ₹), limiting upside potential.
Company Negative News
- 📉 Quarterly profit variation (-16.3%) highlights earnings volatility.
- 📉 Premium valuation compared to industry peers.
Company Positive News
- 📈 Strong efficiency metrics (ROCE and ROE) support fundamentals.
- 📈 Institutional investors increased holdings, reflecting confidence.
- 📈 Technicals show price strength above DMA levels.
Industry
- 🏭 Industry PE is lower (24.4), meaning TATATECH trades at a premium.
- 🏭 Technology and engineering services sector remains resilient with strong demand for innovation and digital solutions.
Conclusion
🔎 TATATECH is a strong candidate for swing trading, supported by robust fundamentals, efficiency, and institutional interest. However, premium valuation and declining profits warrant caution. Entry near 730–750 ₹ and exit around 780–790 ₹ provide a tactical swing trade setup.
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