SWANCORP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | SWANCORP | Market Cap | 9,968 Cr. | Current Price | 318 ₹ | High / Low | 527 ₹ |
| Stock P/E | 537 | Book Value | 146 ₹ | Dividend Yield | 0.03 % | ROCE | 0.12 % |
| ROE | 0.07 % | Face Value | 1.00 ₹ | DMA 50 | 342 ₹ | DMA 200 | 403 ₹ |
| Chg in FII Hold | 0.71 % | Chg in DII Hold | 0.06 % | PAT Qtr | 2.22 Cr. | PAT Prev Qtr | 5.61 Cr. |
| RSI | 41.3 | MACD | -6.35 | Volume | 4,90,803 | Avg Vol 1Wk | 6,47,613 |
| Low price | 295 ₹ | High price | 527 ₹ | PEG Ratio | -419 | Debt to equity | 0.08 |
| 52w Index | 10.2 % | Qtr Profit Var | 41.4 % | EPS | 0.59 ₹ | Industry PE | 14.7 |
📊 Chart Analysis: SWANCORP is trading at ₹318, below both the 50 DMA (₹342) and 200 DMA (₹403), indicating bearish pressure. RSI at 41.3 suggests weak momentum but not oversold. MACD at -6.35 confirms negative momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (4.9L) is below the 1-week average (6.47L), indicating reduced participation.
📈 Momentum Signals: Short-term momentum is bearish, with RSI showing limited strength and MACD confirming weakness. A rebound is possible only if support levels hold.
💹 Support & Resistance: Strong support lies near ₹295 (recent low). Immediate resistance is at ₹342 (50 DMA) and ₹403 (200 DMA). Optimal entry zone: ₹305–₹315. Exit zone: ₹340–₹360.
🔄 Trend Status: The stock is currently reversing downward and attempting to consolidate near support levels.
Positive
- ✅ EPS of ₹0.59 supports valuation, though modest.
- ✅ Very low debt-to-equity ratio of 0.08 shows financial stability.
- ✅ FII holdings increased by 0.71%, reflecting foreign investor interest.
- ✅ DII holdings increased slightly by 0.06%, showing domestic support.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, showing weak technical strength.
- ⚠️ Extremely high P/E of 537 compared to industry P/E of 14.7, suggesting severe overvaluation.
- ⚠️ PEG ratio of -419 indicates poor growth expectations.
- ⚠️ ROCE at 0.12% and ROE at 0.07% are very weak.
Company Negative News
- 📉 PAT declined from ₹5.61 Cr. to ₹2.22 Cr., showing earnings pressure.
- 📉 Quarterly profit variation of 41.4% highlights volatility.
- 📉 Stock trading at only 10.2% of its 52-week index, reflecting severe underperformance.
Company Positive News
- 📈 Institutional investors (FII & DII) increased holdings slightly, showing confidence despite weak fundamentals.
Industry
- 🏭 Chemicals sector trading at industry P/E of 14.7, far lower than SWANCORP’s P/E of 537, highlighting valuation concerns.
- 🏭 Sector supported by demand in specialty chemicals and industrial applications.
Conclusion
📌 SWANCORP is reversing downward, trading below key moving averages with bearish MACD and weak RSI. Entry around ₹305–₹315 with exit near ₹340–₹360 offers a cautious rebound opportunity. Fundamentals show very weak efficiency and extreme overvaluation, though low debt and slight institutional support provide some stability. The stock remains risky and is consolidating near support levels.
For broader context, you could explore a chemicals sector outlook or compare SWANCORP with peers through a valuation comparison.