ZFCVINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 ZFCVINDIA shows strong fundamentals with ROCE (20.2%) and ROE (15.1%), supported by very low debt (0.02). The company has delivered consistent earnings with EPS at 251 ₹, though quarterly PAT declined slightly (-2.62%). Valuation is stretched with a P/E of 62.1 compared to industry average of 30.0, but PEG ratio of 1.20 suggests growth is reasonably priced. Technically, the stock is trading well above both 50 DMA (13,719 ₹) and 200 DMA (13,356 ₹), with RSI at 65.4 indicating bullish momentum but nearing overbought territory. This makes ZFCVINDIA a strong swing trade candidate with tactical entry.

✅ Optimal Entry Price: 15,300–15,400 ₹ (on minor pullback)

🚪 Exit Strategy (if already holding): Consider exit near 15,800–16,000 ₹ (resistance zone), or if RSI crosses 70.

Positive

• 📈 Strong ROCE (20.2%) and ROE (15.1%) highlight efficient capital use.
• 💰 Low debt-to-equity (0.02) ensures financial stability.
• 📊 PEG ratio (1.20) indicates growth is reasonably priced.
• 📉 Price above DMA 50 & DMA 200 confirms bullish technical momentum.

Limitation

• ⚠️ High P/E (62.1) vs industry average (30.0) signals overvaluation risk.
• 📉 Quarterly PAT decline (-2.62%) raises earnings caution.
• 📊 RSI at 65.4 indicates near overbought conditions.
• 📉 Dividend yield (0.13%) offers limited income return.

Company Negative News

• 📉 DII holding decreased (-0.11%), reflecting weaker domestic institutional support.

Company Positive News

• 📈 FII holding increased (+0.06%), showing foreign investor confidence.
• 💹 EPS at 251 ₹ reflects strong earnings power.

Industry

• 🏭 Industry P/E at 30.0 is lower, suggesting peers may be more attractively valued.
• 📊 Auto components and manufacturing sector outlook remains positive, driven by demand growth and export opportunities.

Conclusion

⚖️ ZFCVINDIA is a strong swing trade candidate with robust fundamentals and bullish technicals. Entry near 15,300–15,400 ₹ offers tactical opportunity, while exit near 15,800–16,000 ₹ is prudent. Traders should maintain strict stop-loss discipline due to stretched valuations and near overbought RSI.

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