WELCORP - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | WELCORP | Market Cap | 32,694 Cr. | Current Price | 1,239 ₹ | High / Low | 1,290 ₹ |
| Stock P/E | 43.2 | Book Value | 180 ₹ | Dividend Yield | 0.40 % | ROCE | 18.2 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 973 ₹ | DMA 200 | 867 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.94 % | PAT Qtr | 161 Cr. | PAT Prev Qtr | 231 Cr. |
| RSI | 81.8 | MACD | 106 | Volume | 9,84,096 | Avg Vol 1Wk | 16,50,694 |
| Low price | 706 ₹ | High price | 1,290 ₹ | PEG Ratio | 17.1 | Debt to equity | 0.21 |
| 52w Index | 91.2 % | Qtr Profit Var | 3.28 % | EPS | 47.4 ₹ | Industry PE | 22.4 |
The stock has decent fundamentals with ROCE at 18.2% and ROE at 13.5%, supported by a low debt-to-equity ratio (0.21). However, valuations are stretched (P/E 43.2 vs Industry P/E 22.4, PEG 17.1), and technical indicators show overbought conditions (RSI 81.8, MACD very high). The recent quarterly profit decline (161 Cr vs 231 Cr) adds caution. While momentum is strong, the risk of correction is high, making this a cautious swing trade candidate.
🎯 Optimal Entry Price
Entry is favorable near 1,000–1,020 ₹ (close to 50 DMA support). Current price of 1,239 ₹ is overheated and not ideal for fresh entry.
📤 Exit Strategy
If already holding, consider booking profits near 1,280–1,290 ₹ (recent high). A strict stop-loss around 1,180 ₹ is advisable to protect gains.
✅ Positive
- Strong ROCE (18.2%) and ROE (13.5%).
- Low debt-to-equity ratio (0.21).
- EPS of 47.4 ₹ shows earnings strength.
⚠️ Limitation
- High valuation compared to industry peers (P/E 43.2 vs 22.4).
- Overbought technical indicators (RSI 81.8).
- Quarterly profit decline (161 Cr vs 231 Cr).
- Trading volume lower than weekly average, suggesting reduced momentum.
📰 Company Negative News
- Quarterly profit decline raises concerns about sustainability.
- Valuation stretched compared to industry peers.
🌟 Company Positive News
- Institutional investors showing confidence (DII +0.94%).
- Strong technical momentum with MACD positive.
🏭 Industry
- Industry P/E at 22.4, much lower than company’s 43.2, suggesting overvaluation.
- Sector growth remains steady, but valuations are stretched across peers.
📌 Conclusion
The stock is fundamentally decent but technically overheated, making it a risky candidate for swing trading at current levels. Best strategy: wait for a pullback near 1,000–1,020 ₹ for entry, or exit near 1,280–1,290 ₹ if already holding. Strict risk management is essential.