ZENTEC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📊 ZENTEC offers a fundamentally strong swing trade setup with technical caution. Optimal entry is ₹1,390–₹1,407. If already held, consider exiting near ₹1,455–₹1,475.

📈 Positive

• ROCE (32.9%) and ROE (24.6%) reflect excellent capital efficiency and profitability.
• EPS of ₹22.9 and P/E of 61.4 are aligned with industry PE (66.4), suggesting fair valuation.
• PEG ratio (0.16) indicates undervaluation relative to growth potential.
• Debt-to-equity ratio (0.00) shows a clean balance sheet.
• Quarterly PAT improved from ₹37.1 Cr. to ₹46.2 Cr., showing earnings momentum.

⚠️ Limitation

• MACD (-22.8) and RSI (49.5) suggest weak momentum and lack of bullish confirmation.
• Volume below 1-week average may reflect reduced short-term interest.
• Dividend yield (0.14%) is negligible for income-focused investors.
• Stock has corrected over 46% from its 52-week high, indicating long-term resistance.

🚫 Company Negative News

• FII holdings declined by 0.10% and DII holdings dropped by 0.82%, showing reduced institutional confidence.
• Qtr Profit Var of -29.2% suggests earnings volatility.

✅ Company Positive News

• Strong fundamentals and zero debt position support long-term stability.
• EPS growth and improving PAT indicate operational recovery.

🌐 Industry

• ZENTEC operates in the technology and engineering services sector, which benefits from digital transformation and automation trends.
• Industry P/E of 66.4 reflects high growth expectations.

🧾 Conclusion

• ZENTEC is a technically cautious but fundamentally strong swing trade candidate.
• Optimal entry: ₹1,390–₹1,407 (near current price and support zone).
• Exit target: ₹1,455–₹1,475 (near 50-DMA resistance).
• Watch for MACD reversal and RSI crossing 55 to confirm momentum continuation.

I can help you compare ZENTEC’s setup with other tech engineering stocks to identify stronger swing trade opportunities.