VOLTAS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | VOLTAS | Market Cap | 44,561 Cr. | Current Price | 1,347 ₹ | High / Low | 1,582 ₹ |
| Stock P/E | 90.8 | Book Value | 243 ₹ | Dividend Yield | 0.52 % | ROCE | 12.7 % |
| ROE | 9.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,443 ₹ | DMA 200 | 1,407 ₹ |
| Chg in FII Hold | -1.85 % | Chg in DII Hold | 2.12 % | PAT Qtr | 59.7 Cr. | PAT Prev Qtr | 7.33 Cr. |
| RSI | 35.0 | MACD | -18.2 | Volume | 15,35,934 | Avg Vol 1Wk | 10,07,082 |
| Low price | 1,172 ₹ | High price | 1,582 ₹ | PEG Ratio | 9.67 | Debt to equity | 0.17 |
| 52w Index | 42.6 % | Qtr Profit Var | -44.9 % | EPS | 14.5 ₹ | Industry PE | 44.2 |
📊 VOLTAS currently shows weak potential for swing trading. The RSI at 35.0 indicates oversold conditions, which could support a short-term bounce. However, the MACD is sharply negative (-18.2), and the stock is trading below both its 50 DMA (1,443 ₹) and 200 DMA (1,407 ₹), reflecting bearish momentum. Valuation is stretched (P/E 90.8 vs industry 44.2, PEG 9.67), while fundamentals are modest with ROCE at 12.7% and ROE at 9.79%. Quarterly profits declined sharply (-44.9%), though volumes are higher than average, showing active participation. Overall, this is a risky swing candidate.
💡 Optimal Entry Price: Around 1,320–1,340 ₹ (near support zone above 1,172 ₹).
📈 Exit Strategy if Holding: Consider exiting near 1,400–1,420 ₹ (close to 200 DMA resistance) unless momentum strengthens further.
Positive
- Quarterly PAT improved sequentially (59.7 Cr. vs 7.33 Cr.).
- DII holdings increased (+2.12%), showing domestic institutional support.
- EPS at 14.5 ₹ supports valuation consistency.
- Strong trading volumes above weekly average.
Limitation
- High valuation compared to peers (P/E 90.8 vs industry 44.2).
- Weak fundamentals (ROCE 12.7%, ROE 9.79%).
- Stock trading below DMA 50 and DMA 200, showing bearish technicals.
- Quarterly profit variation (-44.9%) highlights earnings pressure.
Company Negative News
- FII holdings reduced significantly (-1.85%).
- High PEG ratio (9.67) suggests poor growth-adjusted valuation.
Company Positive News
- DII holdings increased (+2.12%), showing confidence from domestic institutions.
- Sequential profit recovery compared to previous quarter.
Industry
- Industry P/E at 44.2 is much lower than VOLTAS’s, highlighting overvaluation.
- Sector remains stable but valuations are stretched for premium players.
Conclusion
⚖️ VOLTAS is financially stable with institutional support but technically weak and highly overvalued. While oversold RSI and strong volumes may trigger a short-term bounce, bearish signals and declining profits make it risky. Entry near 1,320–1,340 ₹ with an exit around 1,400–1,420 ₹ is possible, but strict risk management is essential.