WELCORP - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.2

🏗️ WELCORP Swing Trade Analysis

WELCORP (Welspun Corp Ltd.) presents a strong swing trade setup with solid fundamentals, bullish technical indicators, and improving earnings. While valuation is slightly stretched, the trend and momentum favor a short-term upside.

✅ Strengths

Earnings Momentum

PAT Growth: ₹150 Cr. → ₹214 Cr. — up 88.8%, showing strong profitability.

EPS: ₹37.4 — robust earnings base.

Technical Setup

MACD: 3.60 — bullish crossover, indicating upward momentum.

RSI: 54.0 — neutral-to-bullish zone, with room to rise.

Price Above DMA 50 & 200: Current price ₹895 is above DMA 50 (₹882) and DMA 200 (₹825), confirming trend strength.

Valuation & Financial Health

ROCE: 18.2% / ROE: 13.5% — solid capital efficiency.

Debt-to-Equity: 0.10 — low leverage.

Dividend Yield: 0.56% — modest income support.

Institutional Sentiment

DII Holding Up: +0.22% — domestic confidence.

⚠️ Risks

High P/E (37.5) vs Industry PE (24.0) — relatively expensive.

PEG Ratio: 14.9 — suggests growth doesn’t fully justify valuation.

FII Holding Down: -0.05% — slight foreign outflow.

Volume Drop: Current volume is ~61% below 1-week average, indicating reduced participation.

52W Index: 71.2% — near yearly highs, limiting short-term upside.

🎯 Trade Strategy

Optimal Entry Price: ₹880–₹890

Enter near 50 DMA for a lower-risk setup with trend support.

Exit Plan (If Holding)

Target Exit: ₹940–₹960

Conservative target near short-term resistance.

Stop Loss: ₹860

Below 50 DMA to manage downside risk.

WELCORP is a strong swing candidate for traders looking for momentum in industrials with earnings strength. Let me know if you'd like to compare it with peers like Jindal SAW or Ratnamani Metals.

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