USHAMART - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.3

📊 USHAMART demonstrates strong fundamentals with high ROCE and ROE, low debt, and consistent profit growth. Technically, the stock is trading above both 50 DMA (439 ₹) and 200 DMA (396 ₹), showing bullish momentum. RSI at 53 is neutral, leaving room for upside. However, valuation is stretched with a P/E of 42 compared to industry average of 20.6, and PEG ratio of 2.40.

✅ Optimal Entry Price: 440–445 ₹ (near 50 DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 490–495 ₹ resistance zone, or if RSI rises above 70 (overbought).

Positive

• 📈 Strong ROCE (26.6%) and ROE (21.1%) highlight efficient capital use.
• 💰 Low debt-to-equity (0.03) ensures financial stability.
• 📊 Quarterly profit growth (24.7%) reflects improving earnings momentum.
• 📉 Price above DMA 50 & DMA 200 confirms bullish trend continuation.

Limitation

• ⚠️ High P/E (42.0) vs industry average (20.6) suggests overvaluation.
• 📉 Volume below average (3.19L vs 6.97L) indicates weaker participation.
• 📊 PEG ratio (2.40) signals limited growth relative to valuation.

Company Negative News

• 📉 FII holding decreased (-0.15%), showing reduced foreign investor confidence.

Company Positive News

• 📈 DII holding increased (+1.23%), reflecting strong domestic institutional support.
• 💹 PAT improved from 70.9 Cr. to 97.3 Cr., highlighting earnings strength.

Industry

• 🏭 Industry P/E at 20.6 is much lower, suggesting peers may be more attractively valued.
• 📊 Sector momentum remains positive with strong demand outlook.

Conclusion

✅ USHAMART is a solid swing trade candidate with strong fundamentals and bullish technicals. Entry near 440–445 ₹ offers margin of safety, while exit near 490–495 ₹ is prudent. Valuation remains a concern, so traders should maintain strict stop-loss discipline.

Would you like me to extend this into a peer benchmarking overlay so you can see how USHAMART stacks up against sector leaders, or keep the focus only on this single stock setup?