VOLTAS - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📊 VOLTAS shows signs of technical recovery and strong institutional support, but valuation and earnings pressure limit upside. Optimal entry is ₹1,345–₹1,355. If already held, consider exiting near ₹1,385–₹1,410.

📈 Positive

• MACD (0.34) and RSI (38.9) suggest oversold conditions with potential for a short-term bounce.
• Trading near 50-DMA (₹1,390) and 200-DMA (₹1,387) offers a clear resistance target.
• DII holdings increased by 2.47%, indicating strong domestic institutional confidence.
• Debt-to-equity ratio (0.07) reflects a healthy balance sheet.
• EPS of ₹19.4 supports long-term earnings potential.

⚠️ Limitation

• P/E (70.1) is significantly above industry average (55.8), suggesting overvaluation.
• PEG ratio (7.46) implies expensive pricing relative to growth.
• Quarterly PAT dropped from ₹220 Cr. to ₹203 Cr., indicating earnings pressure.
• Volume slightly below 1-week average may reflect subdued short-term interest.
• Dividend yield (0.51%) is modest for income-focused investors.

🚫 Company Negative News

• FII holdings declined by 0.90%, showing reduced foreign investor confidence.
• Stock has corrected over 27% from its 52-week high of ₹1,860.

✅ Company Positive News

• Strong brand presence in consumer appliances and engineering projects supports long-term stability.
• Consistent profitability and low debt levels reinforce investor appeal.

🌐 Industry

• VOLTAS operates in the consumer durables and engineering services sector, which benefits from seasonal demand and infrastructure growth.
• Industry P/E of 55.8 reflects moderate valuation expectations.

🧾 Conclusion

• VOLTAS is a moderate swing trade candidate with technical support and institutional backing.
• Optimal entry: ₹1,345–₹1,355 (near current support and RSI zone).
• Exit target: ₹1,385–₹1,410 (near DMA resistance).
• Watch for MACD strength and volume pickup to confirm momentum.

I can help you chart VOLTAS’s RSI and MACD trends to visualize the timing for entry and exit.