WELCORP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | WELCORP | Market Cap | 36,906 Cr. | Current Price | 1,397 ₹ | High / Low | 1,428 ₹ |
| Stock P/E | 44.0 | Book Value | 195 ₹ | Dividend Yield | 0.36 % | ROCE | 22.7 % |
| ROE | 17.8 % | Face Value | 5.00 ₹ | DMA 50 | 1,252 ₹ | DMA 200 | 1,000 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.94 % | PAT Qtr | 228 Cr. | PAT Prev Qtr | 161 Cr. |
| RSI | 60.0 | MACD | 38.3 | Volume | 2,93,159 | Avg Vol 1Wk | 4,18,972 |
| Low price | 710 ₹ | High price | 1,428 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.08 |
| 52w Index | 95.8 % | Qtr Profit Var | 51.7 % | EPS | 38.4 ₹ | Industry PE | 21.8 |
📊 WELCORP demonstrates strong fundamentals and bullish technical momentum. The RSI at 60.0 indicates neutral-to-positive momentum, while the MACD at 38.3 confirms strong bullishness. Current price (1,397 ₹) is above both the 50DMA (1,252 ₹) and 200DMA (1,000 ₹), reflecting sustained strength. ROCE (22.7%) and ROE (17.8%) highlight efficiency, while the PEG ratio of 0.73 suggests undervaluation relative to growth. Quarterly PAT improved significantly (228 Cr. vs 161 Cr.), adding confidence.
💡 Optimal Entry Price: Around 1,360–1,380 ₹ (near short-term support zone).
📈 Exit Strategy if Holding: Consider booking profits near 1,420–1,430 ₹ resistance zone, or trail stop-loss below 1,340 ₹.
Positive
- ✅ Strong ROCE (22.7%) and ROE (17.8%) highlight efficiency.
- ✅ EPS of 38.4 ₹ supports valuation strength.
- ✅ PEG ratio of 0.73 indicates undervaluation relative to growth.
- ✅ Price above both 50DMA and 200DMA confirms bullish trend.
- ✅ Quarterly PAT growth (+51.7%) shows earnings momentum.
- ✅ DII holdings increased (+0.94%), showing domestic institutional support.
Limitation
- ⚠️ High P/E ratio (44.0 vs industry 21.8) suggests premium valuation.
- ⚠️ FII holdings declined (-0.22%), showing reduced foreign confidence.
- ⚠️ Dividend yield of 0.36% is relatively low.
- ⚠️ Trading volume below weekly average indicates weaker participation.
Company Negative News
- 📉 Decline in FII holdings (-0.22%).
- 📉 Elevated valuations compared to industry peers.
Company Positive News
- 📈 Quarterly profit growth (+51.7%) reflects strong performance.
- 📈 Domestic institutional investors increased holdings (+0.94%).
Industry
- 🏭 Industry P/E at 21.8 is much lower, highlighting WELCORP’s premium valuation.
- 🏭 Sector outlook remains positive with strong demand in infrastructure and steel pipes.
Conclusion
🔎 WELCORP is a strong swing trade candidate with solid fundamentals and bullish technicals, though valuations are stretched. Entry near 1,360–1,380 ₹ offers favorable risk-reward, while exits should be targeted around 1,420–1,430 ₹. Traders should maintain strict stop-loss discipline below 1,340 ₹ to manage risk.
Would you like me to extend this into a sector overlay benchmarking with peers, or refine it into an intraday momentum setup for sharper entry/exit timing?