ZENTEC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 4.1

📊 ZENTEC shows strong fundamentals with high ROCE (32.9%) and ROE (24.6%), supported by a debt-free balance sheet. The company has delivered consistent earnings with EPS at 22.9 ₹, though quarterly PAT declined (-29.2%). Valuation is slightly stretched with a P/E of 59.8 compared to industry average of 57.9, but PEG ratio of 0.15 indicates attractive growth potential. Technically, the stock is trading below both 50 DMA (1,404 ₹) and 200 DMA (1,526 ₹), with RSI at 40.7 suggesting consolidation and potential for recovery. This makes ZENTEC a good candidate for swing trading.

✅ Optimal Entry Price: 1,340–1,360 ₹ (near support zone)

🚪 Exit Strategy (if already holding): Consider exit near 1,450–1,480 ₹ (resistance zone), or if RSI rises above 55.

Positive

• 📈 Strong ROCE (32.9%) and ROE (24.6%) highlight efficient capital use.
• 💰 Debt-free balance sheet ensures financial stability.
• 📊 PEG ratio (0.15) indicates attractive growth relative to valuation.
• 📉 Healthy trading volume (2.09L vs avg 1.96L) supports liquidity for swing trades.

Limitation

• ⚠️ Quarterly PAT decline (-29.2%) raises earnings concerns.
• 📉 Trading below DMA 50 & DMA 200 confirms short-term weakness.
• 📊 High P/E (59.8) vs industry average (57.9) signals overvaluation risk.
• 📉 52w Index at 25.1% shows underperformance compared to broader market.

Company Negative News

• 📉 FII holding decreased (-0.10%), showing reduced foreign investor confidence.
• 📉 DII holding decreased (-0.82%), reflecting weaker domestic institutional support.

Company Positive News

• 📈 Quarterly PAT improvement from 37.1 Cr. to 46.2 Cr. sequentially shows resilience despite YoY decline.
• 💹 EPS at 22.9 ₹ reflects solid earnings power.

Industry

• 🏭 Industry P/E at 57.9 is slightly lower, suggesting peers trade at fairer valuations.
• 📊 Technology and engineering sector outlook remains positive, driven by innovation and infrastructure demand.

Conclusion

⚖️ ZENTEC is a good swing trade candidate with strong fundamentals and attractive growth metrics. Entry near 1,340–1,360 ₹ offers tactical opportunity, while exit near 1,450–1,480 ₹ is prudent. Traders should maintain strict stop-loss discipline due to short-term weakness and earnings volatility.

Would you like me to extend this into a peer benchmarking overlay so you can compare ZENTEC against other technology and engineering peers for relative strength and valuation positioning?