TECHM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | TECHM | Market Cap | 1,44,140 Cr. | Current Price | 1,472 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 35.7 | Book Value | 222 ₹ | Dividend Yield | 3.06 % | ROCE | 24.3 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,453 ₹ | DMA 200 | 1,502 ₹ |
| Chg in FII Hold | 0.65 % | Chg in DII Hold | -0.45 % | PAT Qtr | 541 Cr. | PAT Prev Qtr | 1,139 Cr. |
| RSI | 54.9 | MACD | 5.38 | Volume | 15,39,393 | Avg Vol 1Wk | 25,04,428 |
| Low price | 1,304 ₹ | High price | 1,854 ₹ | PEG Ratio | 15.8 | Debt to equity | 0.07 |
| 52w Index | 30.5 % | Qtr Profit Var | -23.8 % | EPS | 39.4 ₹ | Industry PE | 21.1 |
TECHM shows good potential for swing trading. The current price of ₹1,472 is slightly above the 50 DMA (₹1,453) but below the 200 DMA (₹1,502), suggesting near-term strength with resistance ahead. RSI at 54.9 is neutral, while MACD at 5.38 indicates bullish momentum. The dividend yield of 3.06% adds investor appeal, and fundamentals are relatively strong with positive EPS (₹39.4) and low debt-to-equity (0.07). However, quarterly profit has declined (-23.8%), which tempers enthusiasm.
💡 Optimal Entry Price: Around ₹1,450–₹1,460 near 50 DMA support.
💡 Exit Strategy (if already holding): Consider exiting near ₹1,500–₹1,520 resistance (200 DMA) unless momentum breaks higher.
✅ Positive
- Strong ROCE (24.3%) and ROE (18.3%) reflect solid efficiency.
- Healthy dividend yield of 3.06% provides investor returns.
- Low debt-to-equity (0.07) indicates financial stability.
- MACD bullish and RSI neutral, supporting short-term upside.
⚠️ Limitation
- Quarterly PAT dropped from ₹1,139 Cr. to ₹541 Cr. (-23.8%).
- Stock trades below 200 DMA, showing medium-term resistance.
- Industry PE (21.1) is lower than TECHM’s PE (35.7), suggesting overvaluation.
📉 Company Negative News
- Recent quarterly profit decline raises concerns about growth momentum.
- DII holdings decreased (-0.45%), showing reduced domestic institutional confidence.
📈 Company Positive News
- FII holdings increased (+0.65%), reflecting foreign investor interest.
- Strong fundamentals with positive EPS and consistent dividend payouts.
🏭 Industry
- Industry PE at 21.1 indicates lower valuations compared to TECHM’s 35.7.
- IT sector remains resilient, but TECHM trades at a premium to peers.
🔎 Conclusion
TECHM is a relatively strong candidate for swing trading with entry near ₹1,450–₹1,460 and exit around ₹1,500–₹1,520. While fundamentals are solid and momentum indicators are supportive, recent profit decline and valuation premium warrant caution. Traders should use stop-losses and monitor quarterly performance closely.