ULTRACEMCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | ULTRACEMCO | Market Cap | 3,18,677 Cr. | Current Price | 10,814 ₹ | High / Low | 13,110 ₹ |
| Stock P/E | 42.2 | Book Value | 2,401 ₹ | Dividend Yield | 0.72 % | ROCE | 11.7 % |
| ROE | 9.69 % | Face Value | 10.0 ₹ | DMA 50 | 12,075 ₹ | DMA 200 | 12,002 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.80 % | PAT Qtr | 1,570 Cr. | PAT Prev Qtr | 1,064 Cr. |
| RSI | 32.7 | MACD | -451 | Volume | 2,91,071 | Avg Vol 1Wk | 4,84,715 |
| Low price | 10,573 ₹ | High price | 13,110 ₹ | PEG Ratio | -12.7 | Debt to equity | 0.30 |
| 52w Index | 9.50 % | Qtr Profit Var | 18.6 % | EPS | 254 ₹ | Industry PE | 27.0 |
📊 ULTRACEMCO shows moderate potential for swing trading. Fundamentals are decent with EPS (254 ₹), ROE (9.69%), and ROCE (11.7%). Debt-to-equity is low at 0.30, reflecting financial stability. Technical indicators are weak: RSI at 32.7 suggests oversold conditions, while MACD (-451) signals strong bearish momentum. The current price (10,814 ₹) is below both the 50 DMA (12,075 ₹) and 200 DMA (12,002 ₹), indicating short-term weakness. Valuation is stretched with a P/E of 42.2 compared to industry PE of 27.0, and PEG ratio (-12.7) suggests poor growth prospects. Quarterly PAT improved from 1,064 Cr. to 1,570 Cr., showing operational strength despite technical weakness.
✅ Optimal Entry Price: Around 10,700–10,850 ₹ (near support levels).
🚪 Exit Strategy: If already holding, consider exiting near 11,900–12,000 ₹ (DMA resistance) unless strong breakout occurs.
🌟 Positive
- EPS of 254 ₹ indicates strong profitability.
- ROE (9.69%) and ROCE (11.7%) show fair efficiency.
- Debt-to-equity ratio of 0.30 reflects financial stability.
- Quarterly PAT surged from 1,064 Cr. to 1,570 Cr.
- DII holdings increased by 0.80%, showing domestic institutional support.
⚠️ Limitation
- Stock trades below both 50 DMA and 200 DMA, signaling bearish trend.
- RSI and MACD indicate weak momentum.
- High P/E (42.2) compared to industry PE (27.0) suggests overvaluation.
- PEG ratio (-12.7) indicates poor growth prospects.
📰 Company Negative News
- FII holdings decreased by -0.89%, showing reduced foreign investor confidence.
- Stock corrected sharply from its high of 13,110 ₹.
📈 Company Positive News
- Quarterly PAT improved significantly, showing operational strength.
- DII inflows (+0.80%) reflect domestic investor confidence.
- Strong book value of 2,401 ₹ provides downside cushion.
🏭 Industry
- Industry PE is 27.0, lower than ULTRACEMCO’s 42.2, suggesting overvaluation compared to peers.
- Cement sector outlook remains positive, supported by infrastructure and housing demand, though margins face cost pressures.
🔎 Conclusion
ULTRACEMCO is a moderately suitable candidate for swing trading. Fundamentals are fair, but technical indicators show weakness and valuation is stretched. Traders may enter near 10,700–10,850 ₹ with a short-term target of 11,900–12,000 ₹. Risk management is essential due to bearish momentum and overvaluation, but strong quarterly PAT and sector demand provide confidence for potential recovery.