VOLTAS - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.7

📊 Analysis Summary

Voltas Ltd is showing early signs of technical recovery backed by strong quarterly earnings growth and solid fundamentals. However, the stock is still below its 200 DMA and has weak relative strength, making it a moderate swing trade candidate with potential upside if momentum improves.

✅ Strengths

MACD: +5.40 & RSI: 47.4

Momentum turning positive — nearing bullish zone.

Quarterly PAT Growth: +113% (₹131 Cr → ₹236 Cr)

Strong earnings rebound — supports sentiment.

ROCE: 17.6% & ROE: 13.4%

Healthy return metrics — operationally sound.

Debt to Equity: 0.14

Low leverage — financially stable.

EPS: ₹25.4 vs Industry PE: 53.3

Reasonable earnings base — supports valuation.

Trading near DMA 50 (₹1,332)

Potential support zone — watch for breakout.

⚠️ Weaknesses

P/E: 53.6 vs PEG Ratio: 3.03

Expensive — growth not fully justifying valuation.

Book Value: ₹197 vs CMP ₹1,335

High premium — not attractive for value entry.

FII Holding ↓ 0.79%

Foreign investors trimming exposure.

Volume: 6.46L vs Avg 7.76L

Slightly below average — low conviction.

Trading Below DMA 200 (₹1,391)

Still in technical recovery — not fully bullish.

52W Index: 24.7%

Weak relative strength — far from yearly high.

🎯 Optimal Entry Price

Entry Zone: ₹1,310–₹1,325

Near DMA 50 — wait for RSI to cross 50 and MACD to remain positive.

Confirmation: Look for volume spike and price closing above ₹1,340.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,375–₹1,390

Near DMA 200 — good level to book profits.

Stop Loss: ₹1,285

Below recent support — protects against downside.

Would you like to explore other consumer durable or mid-cap engineering stocks with stronger breakout setups for swing trading?

Edit in a page