VGUARD - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.7

📊 Analysis Summary

V-Guard Industries (VGUARD) is currently not an ideal candidate for swing trading due to weak technical momentum, declining earnings, and stretched valuation. While the company has solid long-term fundamentals and low debt, the short-term setup lacks strength and conviction.

✅ Positives

ROCE: 19.5% & ROE: 15.8%

Strong operational efficiency — supports long-term value.

Low Debt (D/E: 0.06)

Financially stable — reduces downside risk.

DII Holding ↑ 0.98%

Domestic institutions accumulating — mild positive sentiment.

MACD: +2.99

Early bullish signal — but not yet strong.

Volume Surge: 10.6L vs Avg 3.8L

High activity — potential for short-term bounce.

⚠️ Weaknesses

RSI: 42.1

Below neutral — weak momentum.

Trading Around DMA 50 & 200 (₹387 & ₹383)

No clear trend — indecisive setup.

Quarterly PAT Decline: –25.4%

Significant earnings drop — short-term headwind.

P/E: 58.2 vs Industry PE: 53.3

Overvalued — limits upside potential.

PEG Ratio: 5.41

High PEG — poor growth-to-valuation ratio.

52W Index: 30.6%

Far from yearly high — weak relative strength.

FII Holding ↓ 0.88%

Foreign investors exiting — negative sentiment.

🎯 Optimal Entry Price

Entry Zone: ₹370–₹375

Near support — only consider entry if RSI rises above 50 and MACD strengthens.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹410–₹420

Near resistance zone — good level to book profits.

Stop Loss: ₹360

Below recent support — protects against further downside.

Would you like to explore other consumer electrical or appliance stocks with stronger breakout setups and better earnings momentum for swing trading?

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