ZFCVINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

🚚 ZFCVINDIA Swing Trade Analysis

ZF Commercial Vehicle Control Systems India Ltd. (ZFCVINDIA) shows strong fundamentals and institutional accumulation, but current technical indicators and low trading volume suggest limited short-term momentum for swing trading.

✅ Strengths

Fundamental Quality

ROCE: 20.2% / ROE: 15.1% — strong capital efficiency.

EPS: ₹253 — robust earnings base.

Debt-to-Equity: 0.00 — completely debt-free.

PEG Ratio: 1.03 — fairly valued relative to growth.

DII Holding Up: +3.04% / FII Holding Up: +0.16% — institutional confidence.

Valuation

P/E: 53.1 vs Industry PE: 29.0 — premium valuation, supported by strong earnings.

⚠️ Weaknesses

Technical Indicators

MACD: -67.3 — bearish crossover, signaling downward momentum.

RSI: 42.6 — weak zone, lacking strength.

Price Below 50 DMA (₹13,649) — short-term trend remains soft.

Volume Drop: Current volume is ~67% below 1-week average, indicating low participation.

Earnings Pressure

PAT Decline: ₹125 Cr. → ₹120 Cr. — slight contraction.

Dividend Yield: 0.14% — minimal income support.

52W Index: 54.6% — mid-range, indicating partial recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹13,300–₹13,350

Enter near 200 DMA only if MACD flattens and RSI trends upward.

Exit Plan (If Holding)

Target Exit: ₹13,800–₹14,000

Conservative target near 50 DMA and short-term resistance.

Stop Loss: ₹13,000

Below 200 DMA to manage downside risk.

ZFCVINDIA is a fair swing candidate for traders who prioritize strong fundamentals and are willing to wait for technical confirmation. If you'd like to explore better momentum setups in the auto component space, I can help you compare with peers like Bosch or Sundram Fasteners.

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