TECHM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | TECHM | Market Cap | 1,61,248 Cr. | Current Price | 1,645 ₹ | High / Low | 1,854 ₹ |
| Stock P/E | 38.4 | Book Value | 221 ₹ | Dividend Yield | 2.74 % | ROCE | 18.2 % |
| ROE | 14.0 % | Face Value | 5.00 ₹ | DMA 50 | 1,625 ₹ | DMA 200 | 1,554 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 3.15 % | PAT Qtr | 1,139 Cr. | PAT Prev Qtr | 1,176 Cr. |
| RSI | 46.3 | MACD | 30.7 | Volume | 50,39,174 | Avg Vol 1Wk | 22,06,842 |
| Low price | 1,209 ₹ | High price | 1,854 ₹ | PEG Ratio | -2.71 | Debt to equity | 0.05 |
| 52w Index | 67.6 % | Qtr Profit Var | 32.7 % | EPS | 41.1 ₹ | Industry PE | 24.8 |
📊 TECHM shows solid fundamentals with strong dividend yield, low debt, and consistent profitability. However, the stock trades at a premium valuation compared to industry PE, and recent FII outflows raise caution. Technical indicators suggest moderate momentum, making it a fair candidate for swing trading with controlled risk.
✅ Optimal Entry Price: Around 1,600–1,620 ₹ (near 50 DMA support)
🚪 Exit Strategy: If already holding, consider exiting near 1,720–1,750 ₹ (resistance zone before 1,854 ₹ high).
Positive
- Dividend yield of 2.74% provides steady returns.
- Low debt-to-equity (0.05) ensures financial stability.
- Strong EPS (41.1 ₹) and consistent PAT (1,139 Cr vs 1,176 Cr).
- High trading volume significantly above weekly average, indicating strong liquidity.
- Stock trading above both 50 DMA (1,625 ₹) and 200 DMA (1,554 ₹), showing medium-term strength.
Limitation
- High P/E (38.4) compared to industry PE (24.8), suggesting overvaluation.
- ROCE (18.2%) and ROE (14.0%) are moderate compared to peers.
- RSI at 46.3 is neutral, not strongly oversold.
- PEG ratio (-2.71) indicates weak growth relative to valuation.
- FII holdings decreased (-2.66%), showing reduced foreign investor confidence.
Company Negative News
- Decline in FII holdings signals cautious sentiment from global investors.
- Quarterly PAT slightly lower compared to previous quarter.
Company Positive News
- DII holdings increased (+3.15%), showing strong domestic institutional support.
- Quarterly profit variation of 32.7% indicates resilience.
- Dividend yield remains attractive for long-term investors.
Industry
- Industry PE at 24.8 is lower, suggesting TECHM trades at a premium.
- IT services sector remains in demand globally, with digital transformation driving growth.
Conclusion
⚖️ TECHM is a fundamentally stable company with attractive dividend yield and strong liquidity. For swing trading, entry near 1,600–1,620 ₹ offers a favorable setup, with exit near 1,720–1,750 ₹. While valuation is stretched, domestic support and technical strength provide short-term trading opportunities. Caution is advised due to FII outflows and moderate profitability metrics.