VOLTAS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.0
| Stock Code | VOLTAS | Market Cap | 48,121 Cr. | Current Price | 1,454 ₹ | High / Low | 1,582 ₹ |
| Stock P/E | 98.0 | Book Value | 243 ₹ | Dividend Yield | 0.48 % | ROCE | 12.7 % |
| ROE | 9.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,409 ₹ | DMA 200 | 1,399 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 59.7 Cr. | PAT Prev Qtr | 7.33 Cr. |
| RSI | 55.0 | MACD | 27.8 | Volume | 5,25,162 | Avg Vol 1Wk | 9,68,724 |
| Low price | 1,186 ₹ | High price | 1,582 ₹ | PEG Ratio | 10.4 | Debt to equity | 0.17 |
| 52w Index | 67.7 % | Qtr Profit Var | -44.9 % | EPS | 14.5 ₹ | Industry PE | 48.7 |
The stock has moderate fundamentals with ROCE at 12.7% and ROE at 9.79%. While it shows some profitability, valuations are stretched (P/E 98 vs Industry P/E 48.7, PEG 10.4). Technicals are neutral (RSI 55, MACD positive), suggesting limited upside in the short term. The recent quarterly profit decline (-44.9%) raises caution for swing traders.
🎯 Optimal Entry Price
Entry is favorable near 1,400 ₹ (close to 50 DMA and 200 DMA support). Current price of 1,454 ₹ is slightly above support but not ideal for fresh entry.
📤 Exit Strategy
If already holding, consider exiting near 1,500–1,520 ₹. Maintain a stop-loss around 1,390 ₹ to protect downside risk.
✅ Positive
- Strong book value (243 ₹).
- Dividend yield of 0.48% provides some shareholder return.
- Low debt-to-equity ratio (0.17).
⚠️ Limitation
- High valuation compared to industry peers (P/E 98 vs 48.7).
- Weak ROE (9.79%) and ROCE (12.7%).
- Quarterly profit decline (-44.9%).
📰 Company Negative News
- Sharp drop in quarterly profits (59.7 Cr vs 7.33 Cr previous quarter).
- Valuation concerns due to high P/E and PEG ratio.
🌟 Company Positive News
- Stable institutional holdings (FII +0.03%, DII +0.54%).
- MACD positive, showing short-term momentum.
🏭 Industry
- Industry P/E at 48.7, much lower than company’s 98, suggesting overvaluation.
- Sector growth remains steady, but valuations are stretched across peers.
📌 Conclusion
The stock is moderately strong but overvalued, making it a cautious candidate for swing trading. Entry near 1,400 ₹ is optimal, while profit booking around 1,500–1,520 ₹ is advisable. Risk management is essential due to weak earnings momentum.