ULTRACEMCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | ULTRACEMCO | Market Cap | 3,76,407 Cr. | Current Price | 12,770 ₹ | High / Low | 13,102 ₹ |
| Stock P/E | 49.9 | Book Value | 2,401 ₹ | Dividend Yield | 0.61 % | ROCE | 11.7 % |
| ROE | 9.69 % | Face Value | 10.0 ₹ | DMA 50 | 12,140 ₹ | DMA 200 | 11,920 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.80 % | PAT Qtr | 1,570 Cr. | PAT Prev Qtr | 1,064 Cr. |
| RSI | 64.2 | MACD | 203 | Volume | 1,62,850 | Avg Vol 1Wk | 2,68,759 |
| Low price | 10,048 ₹ | High price | 13,102 ₹ | PEG Ratio | -15.0 | Debt to equity | 0.30 |
| 52w Index | 89.1 % | Qtr Profit Var | 18.6 % | EPS | 254 ₹ | Industry PE | 30.8 |
📊 ULTRACEMCO shows strong profitability growth and institutional support from DIIs, but trades at a premium compared to industry PE. Technical indicators suggest bullish momentum, though RSI is near overbought levels. It is a moderately good candidate for swing trading with cautious positioning.
✅ Optimal Entry Price: Around 12,500–12,650 ₹ (near support close to 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 13,000–13,100 ₹ (resistance zone close to 52-week high).
Positive
- Quarterly PAT improved significantly (1,570 Cr vs 1,064 Cr).
- EPS of 254 ₹ supports strong earnings power.
- DII holdings increased (+0.80%), showing domestic institutional confidence.
- MACD positive (203) indicates bullish momentum.
- Stock trading above both 50 DMA (12,140 ₹) and 200 DMA (11,920 ₹), showing technical strength.
Limitation
- High P/E (49.9) compared to industry PE (30.8), suggesting overvaluation.
- ROCE (11.7%) and ROE (9.69%) are modest compared to peers.
- RSI at 64.2 is near overbought territory, limiting upside potential.
- PEG ratio of -15.0 indicates poor growth relative to valuation.
- Trading volume lower than weekly average, reflecting reduced participation.
Company Negative News
- Decline in FII holdings (-0.89%) shows reduced foreign investor confidence.
- Efficiency ratios remain modest despite profit growth.
Company Positive News
- Quarterly profit variation of 18.6% highlights strong earnings momentum.
- DII holdings increased, reflecting domestic support.
- Stock trading near 52-week high, showing strong price momentum.
Industry
- Industry PE at 30.8 is lower, highlighting ULTRACEMCO’s premium valuation.
- Cement sector benefits from infrastructure expansion and housing demand in India.
Conclusion
⚖️ ULTRACEMCO offers moderate swing trading potential with entry near 12,500–12,650 ₹ and exit near 13,000–13,100 ₹. Strong profit growth and bullish technicals support upside, but premium valuation and modest efficiency ratios warrant caution. Best suited for short-term traders seeking controlled gains.