WELCORP - Swing Trade Analysis

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

Swing Trade Rating: 4.3

📊 Analysis Summary

Welspun Corp Ltd (WELCORP) is a technically strong and fundamentally sound stock, making it a high-quality candidate for swing trading. Despite a slightly negative MACD, the stock is trading above key moving averages with strong volume and earnings momentum, suggesting a potential breakout on confirmation.

✅ Strengths

Valuation

P/E of 15.0 vs Industry PE of 23.8 — undervalued.

PEG Ratio of 0.38 — attractive relative to growth.

Profitability

ROCE: 21.2% & ROE: 18.5% — strong operational efficiency.

EPS: ₹76.6 — robust earnings base.

Technical Setup

Trading above DMA 50 (₹894) and DMA 200 (₹802) — bullish structure.

RSI: 53.3 — neutral to bullish zone.

Volume: 23.5L vs Avg 9.2L — strong buying interest.

Growth Momentum

PAT Qtr: ₹349 Cr. vs ₹309 Cr. — +40.8% growth.

52W Index: 82.2% — strong relative strength.

Financial Health

Debt to Equity: 0.15 — low leverage.

DII Holding ↑ 0.22% — institutional support.

⚠️ Risks

MACD: –1.72

Slight bearish crossover — watch for reversal signal.

FII Holding ↓ 0.05%

Minor foreign exit — not alarming but worth noting.

Book Value: ₹284 vs CMP ₹925

High premium — not ideal for value investors.

🎯 Optimal Entry Price

Entry Zone: ₹900–₹915

Near DMA 50 — ideal for low-risk entry.

Confirmation Needed

Wait for MACD to turn positive and RSI to cross 55 for momentum confirmation.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹970–₹990

Near recent high — strong resistance zone.

Stop Loss: ₹875

Below DMA 50 — protects against downside reversal.

Would you like to explore similar industrial or infrastructure stocks with breakout setups and stronger MACD signals for swing trading?

Edit in a page