ULTRACEMCO - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.2

📊 ULTRACEMCO is currently trading at ₹11,497, below both its 50 DMA (₹11,795) and 200 DMA (₹11,820), reflecting weak technical momentum. RSI at 41.5 suggests the stock is approaching oversold territory, while MACD at -85.9 indicates bearish sentiment. The optimal entry price would be near ₹11,200–₹11,300, closer to support levels. If already holding, consider exiting around ₹12,000–₹12,200, where resistance is expected.

✅ Positive

• 📈 EPS at ₹249, reflecting strong profitability
• 📊 Large market cap (₹3,38,797 Cr.) provides stability in the cement sector
• 📉 Debt-to-equity ratio at 0.30, showing manageable leverage
• 📈 FII holding increased slightly (+0.10%), showing marginal foreign investor confidence

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming weak technical trend
• 📊 High P/E ratio (46.4) compared to industry average (33.2), suggesting overvaluation
• 📉 Low ROCE (11.7%) and ROE (9.69%), reflecting weak efficiency
• 📉 Dividend yield at 0.68%, offering limited shareholder return
• 📉 PEG ratio at -14.0, indicating poor growth prospects relative to valuation

🚨 Company Negative News

• 📉 PAT declined sharply from ₹2,232 Cr. to ₹1,064 Cr.
• 📉 DII holding decreased by -0.20%, showing reduced domestic institutional confidence
• 📉 Trading volume (1,09,984) below weekly average (1,72,169), indicating weaker participation

🌟 Company Positive News

• 📈 EPS at ₹249, maintaining profitability despite earnings decline
• 📊 Quarterly profit variation (+56.5%) highlights operational improvement compared to prior weak quarters

🏭 Industry

• 📊 Industry P/E at 33.2 is lower, suggesting ULTRACEMCO trades at a premium
• 🌐 Cement sector benefits from infrastructure demand but remains cyclical with margin pressures

📌 Conclusion

ULTRACEMCO is a cautious swing trade candidate. While fundamentals show profitability and sector strength, technicals remain weak with bearish signals. Entry is best near ₹11,200–₹11,300, while exit should be considered around ₹12,000–₹12,200. Traders should monitor RSI and MACD trends closely before committing.

Would you like me to also compare ULTRACEMCO’s swing trade setup with RAMCOCEM or ACC to see relative opportunities within the cement sector?