VOLTAS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📊 VOLTAS shows moderate fundamentals with ROCE (12.7%) and ROE (9.79%), supported by low debt (0.17). However, the stock is trading near both 50 DMA (1,370 ₹) and 200 DMA (1,380 ₹), indicating consolidation. RSI at 58.9 is neutral, suggesting limited upside. Valuation is stretched with a P/E of 84.3 compared to industry average of 49.3, and PEG ratio of 8.98 signals expensive growth. Quarterly PAT has dropped sharply (-93.3%), raising earnings concerns despite strong DII support.

✅ Optimal Entry Price: 1,350–1,365 ₹ (near DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 1,420–1,450 ₹ (resistance zone), or if RSI rises above 65.

Positive

• 📈 ROCE (12.7%) and ROE (9.79%) show moderate efficiency.
• 💰 Low debt-to-equity (0.17) ensures financial stability.
• 📊 DII holding increased (+2.47%), reflecting strong domestic institutional support.
• 📉 Price near DMA 50 & DMA 200 provides technical support zone.

Limitation

• ⚠️ High P/E (84.3) vs industry average (49.3) indicates overvaluation.
• 📉 Quarterly PAT decline (-93.3%) raises serious earnings concerns.
• 📊 High PEG ratio (8.98) signals expensive growth relative to earnings.
• 📉 52w Index at 33.3% shows underperformance compared to broader market.

Company Negative News

• 📉 FII holding decreased (-0.90%), showing reduced foreign investor confidence.
• 📉 Sequential profit collapse from 203 Cr. to 7.33 Cr. highlights volatility.

Company Positive News

• 📈 DII holding increased (+2.47%), reflecting strong domestic institutional support.
• 💹 Dividend payout (0.50%) continues, supporting investor sentiment.

Industry

• 🏭 Industry P/E at 49.3 is lower, suggesting peers trade at more attractive valuations.
• 📊 Consumer durables sector outlook remains positive, driven by seasonal demand and infrastructure growth.

Conclusion

⚖️ VOLTAS is a cautious swing trade candidate. Fundamentals are moderate, but stretched valuations and sharp profit decline limit upside. Entry near 1,350–1,365 ₹ offers tactical opportunity, while exit near 1,420–1,450 ₹ is prudent. Strict stop-loss discipline is essential due to earnings volatility and sector competition.

Would you like me to extend this into a peer benchmarking overlay so you can compare VOLTAS against other consumer durable peers like Blue Star and Havells for relative strength and valuation positioning?