TECHM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | TECHM | Market Cap | 1,41,922 Cr. | Current Price | 1,448 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 35.2 | Book Value | 222 ₹ | Dividend Yield | 3.52 % | ROCE | 24.3 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,456 ₹ | DMA 200 | 1,489 ₹ |
| Chg in FII Hold | 0.65 % | Chg in DII Hold | -0.45 % | PAT Qtr | 541 Cr. | PAT Prev Qtr | 1,139 Cr. |
| RSI | 48.2 | MACD | 0.99 | Volume | 23,56,386 | Avg Vol 1Wk | 22,46,884 |
| Low price | 1,304 ₹ | High price | 1,854 ₹ | PEG Ratio | 15.6 | Debt to equity | 0.07 |
| 52w Index | 26.1 % | Qtr Profit Var | -23.8 % | EPS | 39.4 ₹ | Industry PE | 21.0 |
📈 Optimal Entry Price: 1,440–1,450 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider exiting near 1,490–1,520 ₹ (200 DMA resistance) or earlier if momentum weakens.
Positive
- 📊 Strong ROE (18.3%) and ROCE (24.3%) indicate healthy returns.
- 💰 Dividend yield of 3.52% provides steady income.
- 📉 Low debt-to-equity ratio (0.07) shows financial stability.
- 📈 EPS of 39.4 ₹ supports valuation despite recent profit decline.
Limitation
- ⚠️ Quarterly PAT dropped sharply from 1,139 Cr. to 541 Cr.
- 📊 PEG ratio of 15.6 suggests overvaluation relative to growth.
- 📉 DII holdings decreased (-0.45%), showing reduced domestic institutional support.
- 📈 High P/E (35.2) compared to industry PE (21.0) indicates relative overvaluation.
Company Negative News
- ❌ Quarterly profit variation at -23.8% signals earnings pressure.
- ⚠️ Valuation stretched compared to peers in the IT sector.
Company Positive News
- ✅ FII holdings increased (+0.65%), reflecting foreign investor confidence.
- 📊 Strong EPS of 39.4 ₹ supports valuation despite recent profit decline.
Industry
- 🌐 Industry PE at 21.0 is lower than TECHM’s PE (35.2), suggesting relative overvaluation.
- 📈 IT sector remains resilient with long-term demand drivers like digital transformation and cloud adoption.
Conclusion
⚖️ TECHM is a cautious swing trade candidate. Entry near 1,440–1,450 ₹ offers a favorable risk-reward setup, with exit near 1,490–1,520 ₹. While fundamentals are strong, short-term bearish signals (profit decline, high PEG ratio) require strict stop-loss discipline around 1,420 ₹.
This structured report highlights TECHM’s moderate swing potential with strong fundamentals but short-term earnings pressure. Would you like me to extend this into a peer benchmarking report comparing TECHM against other IT majors like TCS, Infosys, and HCLTECH, or a sector overlay analysis to visualize its position within the IT industry momentum?