USHAMART - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | USHAMART | Market Cap | 12,101 Cr. | Current Price | 397 ₹ | High / Low | 498 ₹ |
| Stock P/E | 36.6 | Book Value | 52.2 ₹ | Dividend Yield | 0.76 % | ROCE | 26.6 % |
| ROE | 21.1 % | Face Value | 1.00 ₹ | DMA 50 | 419 ₹ | DMA 200 | 408 ₹ |
| Chg in FII Hold | 0.48 % | Chg in DII Hold | 1.82 % | PAT Qtr | 84.0 Cr. | PAT Prev Qtr | 97.3 Cr. |
| RSI | 42.2 | MACD | -4.09 | Volume | 3,65,862 | Avg Vol 1Wk | 3,24,756 |
| Low price | 281 ₹ | High price | 498 ₹ | PEG Ratio | 2.09 | Debt to equity | 0.03 |
| 52w Index | 53.6 % | Qtr Profit Var | 8.99 % | EPS | 9.94 ₹ | Industry PE | 17.9 |
📊 USHAMART presents a moderately favorable setup for swing trading. The RSI at 42.2 indicates the stock is close to oversold levels, which could support a rebound. The MACD is negative (-4.09), showing weak momentum, but volumes are slightly above the weekly average, suggesting active participation. Valuation is high (P/E 36.6 vs industry 17.9), yet strong fundamentals (ROCE 26.6%, ROE 21.1%) and low debt (0.03) provide stability. This makes it a cautious but potentially rewarding swing candidate.
💡 Optimal Entry Price: Around 385–395 ₹ (near current support zone).
📈 Exit Strategy if Holding: Target 415–425 ₹ (close to DMA 50 resistance) for short-term swing gains.
Positive
- Strong ROCE (26.6%) and ROE (21.1%) reflect efficient capital use.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Volumes above weekly average show active trader interest.
Limitation
- High valuation compared to industry peers (P/E 36.6 vs 17.9).
- Negative MACD indicates weak momentum.
- Quarterly PAT declined from 97.3 Cr. to 84 Cr., showing earnings pressure.
Company Negative News
- Quarterly profit dropped by 13.7 Cr., reflecting short-term weakness.
Company Positive News
- Domestic institutional investors increased holdings (+1.82%).
- Foreign institutional investors also raised stake (+0.48%).
- Strong EPS growth (9.94 ₹) supports long-term fundamentals.
Industry
- Industry P/E at 17.9 highlights sector is cheaper compared to USHAMART’s premium valuation.
- Sector growth remains steady, but valuations are stretched for premium players.
Conclusion
⚖️ USHAMART is fundamentally strong with institutional support, but technically weak due to negative MACD and high valuation. A cautious swing trade is possible if entered near 385–395 ₹ with an exit around 415–425 ₹. Risk management is essential given earnings pressure and stretched valuations.