⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
WELCORP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | WELCORP | Market Cap | 21,471 Cr. | Current Price | 814 ₹ | High / Low | 995 ₹ |
| Stock P/E | 28.4 | Book Value | 180 ₹ | Dividend Yield | 0.61 % | ROCE | 18.2 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 791 ₹ | DMA 200 | 822 ₹ |
| Chg in FII Hold | -0.34 % | Chg in DII Hold | -0.34 % | PAT Qtr | 161 Cr. | PAT Prev Qtr | 231 Cr. |
| RSI | 60.5 | MACD | -4.73 | Volume | 4,43,392 | Avg Vol 1Wk | 8,12,667 |
| Low price | 664 ₹ | High price | 995 ₹ | PEG Ratio | 11.2 | Debt to equity | 0.21 |
| 52w Index | 45.3 % | Qtr Profit Var | 3.28 % | EPS | 47.4 ₹ | Industry PE | 19.5 |
📊 WELCORP shows moderate potential for swing trading. Strong fundamentals and decent technical positioning support short-term opportunities, but declining profits and weak momentum indicators limit upside. Entry is favorable near support levels, while exits should be timed around resistance zones.
Positive ✅
- ROCE (18.2%) and ROE (13.5%) reflect solid capital efficiency.
- Dividend yield of 0.61% provides shareholder returns.
- EPS of 47.4 ₹ supports earnings strength.
- RSI at 60.5 indicates healthy momentum.
- Stock trading close to both 50 DMA (791 ₹) and 200 DMA (822 ₹), showing technical stability.
- Debt-to-equity ratio of 0.21 indicates manageable leverage.
Limitation ⚠️
- P/E ratio (28.4) is higher than industry average (19.5), suggesting overvaluation.
- PEG ratio of 11.2 indicates poor growth prospects relative to valuation.
- MACD (-4.73) signals weak momentum despite RSI strength.
- Trading volume lower than weekly average, reducing short-term momentum strength.
Company Negative News ❌
- Quarterly PAT declined (161 Cr. vs 231 Cr.), showing earnings pressure.
- Decline in both FII (-0.34%) and DII (-0.34%) holdings reflects reduced institutional confidence.
Company Positive News 🌟
- Quarterly profit variation (+3.28%) shows some resilience despite decline in absolute PAT.
- Strong 52-week performance (+45.3%) highlights investor confidence.
Industry 📈
- Industry P/E at 19.5 is lower, highlighting sector stability compared to WELCORP’s valuation.
- Steel and infrastructure sector demand remains cyclical but supported by government spending.
Conclusion 📝
WELCORP is moderately attractive for swing trading with stable fundamentals but weak technicals. Optimal entry would be near 790–800 ₹ support (close to DMA levels). For existing holders, consider exiting around 880–900 ₹ (near resistance), as upside is capped by valuation pressure and declining profits.