VOLTAS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | VOLTAS | Market Cap | 44,984 Cr. | Current Price | 1,358 ₹ | High / Low | 1,582 ₹ |
| Stock P/E | 127 | Book Value | 241 ₹ | Dividend Yield | 0.29 % | ROCE | 5.82 % |
| ROE | 4.39 % | Face Value | 1.00 ₹ | DMA 50 | 1,325 ₹ | DMA 200 | 1,370 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 82.2 Cr. | PAT Prev Qtr | 59.7 Cr. |
| RSI | 59.6 | MACD | 3.97 | Volume | 12,04,531 | Avg Vol 1Wk | 13,50,739 |
| Low price | 1,187 ₹ | High price | 1,582 ₹ | PEG Ratio | -11.0 | Debt to equity | 0.10 |
| 52w Index | 43.2 % | Qtr Profit Var | -62.7 % | EPS | 10.3 ₹ | Industry PE | 48.2 |
📊 VOLTAS shows weak fundamentals with stretched valuations but moderate technical momentum. The RSI at 59.6 indicates neutral-to-positive momentum, while the MACD at 3.97 suggests mild bullishness. Current price (1,358 ₹) is above the 50DMA (1,325 ₹) but slightly below the 200DMA (1,370 ₹), reflecting mixed sentiment. ROCE (5.82%) and ROE (4.39%) are weak, while the P/E of 127 vs industry average of 48.2 highlights severe overvaluation. Quarterly profit declined sharply (-62.7%), raising caution despite short-term momentum.
💡 Optimal Entry Price: Around 1,300–1,320 ₹ (near 50DMA support zone).
📈 Exit Strategy if Holding: Consider booking profits near 1,380–1,400 ₹ resistance zone, or cut losses if price falls below 1,280 ₹.
Positive
- ✅ EPS of 10.3 ₹ provides earnings visibility.
- ✅ Price supported near 52-week low (1,187 ₹).
- ✅ Dividend yield of 0.29% adds minor investor appeal.
- ✅ Institutional support: FII (+0.03%), DII (+0.54%).
Limitation
- ⚠️ Very high P/E ratio (127 vs industry 48.2).
- ⚠️ Weak ROCE (5.82%) and ROE (4.39%).
- ⚠️ Quarterly PAT declined (-62.7%).
- ⚠️ PEG ratio of -11.0 suggests poor growth prospects.
- ⚠️ Price below 200DMA reflects medium-term weakness.
Company Negative News
- 📉 Significant decline in quarterly profits raises concerns.
- 📉 Weak technical momentum with mixed indicators.
Company Positive News
- 📈 Institutional investors increased holdings slightly (FII +0.03%, DII +0.54%).
- 📈 Dividend yield remains attractive at 0.29%.
Industry
- 🏭 Industry P/E at 48.2, much lower than company’s valuation, highlighting overvaluation risk.
- 🏭 Sector outlook remains steady, but VOLTAS trades at a steep premium.
Conclusion
🔎 VOLTAS is a weak swing trade candidate with poor fundamentals and stretched valuations. Entry near 1,300–1,320 ₹ offers limited risk-reward, while exits should be targeted around 1,380–1,400 ₹. Strict stop-loss discipline is essential due to high valuations and declining profitability.
Would you like me to extend this into a peer benchmarking overlay with sector comparisons, or refine it into an intraday trade setup for sharper entry/exit timing?