ADANIENSOL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.5
| Stock Code | ADANIENSOL | Market Cap | 1,18,656 Cr. | Current Price | 988 ₹ | High / Low | 1,068 ₹ |
| Stock P/E | 208 | Book Value | 167 ₹ | Dividend Yield | 0.00 % | ROCE | 5.13 % |
| ROE | 3.81 % | Face Value | 10.0 ₹ | DMA 50 | 947 ₹ | DMA 200 | 917 ₹ |
| Chg in FII Hold | 0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 56.9 | MACD | -14.6 | Volume | 17,59,651 | Avg Vol 1Wk | 21,70,378 |
| Low price | 639 ₹ | High price | 1,068 ₹ | PEG Ratio | 1.70 | Debt to equity | 0.52 |
| 52w Index | 81.4 % | Qtr Profit Var | -30.3 % | EPS | 4.74 ₹ | Industry PE | 52.8 |
📊 ADANIENSOL shows weak fundamentals for swing trading despite trading above both 50 DMA (947 ₹) and 200 DMA (917 ₹). The valuation is extremely stretched with a P/E of 208 compared to industry PE of 52.8. Profitability ratios (ROCE 5.13%, ROE 3.81%) are low, and quarterly profit variation (-30.3%) raises concerns. Technical indicators are mixed: RSI at 56.9 is neutral, but MACD (-14.6) signals bearish momentum. Overall, it is a risky candidate for swing trading.
💡 Optimal Entry Price: Around 950–960 ₹ (near 50 DMA support).
🚪 Exit Strategy (if already holding): Consider exiting near 1,050–1,065 ₹ resistance levels or if price falls below 915 ₹ (200 DMA support).
✅ Positive
- Stock trading above both 50 DMA and 200 DMA, showing medium-term strength.
- Institutional confidence with FII (+0.41%) and DII (+0.17%) holdings increasing.
- Sequential PAT growth (101 Cr. → 114 Cr.) despite YoY decline.
- PEG ratio (1.70) indicates some growth potential relative to valuation.
⚠️ Limitation
- Extremely high P/E ratio (208) compared to industry PE (52.8), making valuation unattractive.
- Low ROCE (5.13%) and ROE (3.81%) reflect weak profitability.
- Dividend yield is 0.00%, offering no income support.
- MACD (-14.6) indicates bearish momentum.
📉 Company Negative News
- Quarterly profit variation (-30.3%) highlights earnings volatility.
- EPS remains low at 4.74 ₹ despite high valuation.
- Trading volume lower than average (17,59,651 vs 21,70,378), showing reduced liquidity.
📈 Company Positive News
- Sequential PAT growth (101 Cr. → 114 Cr.) shows short-term improvement.
- Both FII and DII holdings increased, reflecting institutional support.
- Stock trading near 52-week high zone (81.4%), showing resilience.
🏭 Industry
- Industry PE is 52.8, far lower than company’s 208, highlighting overvaluation.
- Sector outlook remains stable, but company-specific profitability is weak.
🔎 Conclusion
ADANIENSOL is overvalued with weak profitability and bearish technical signals, making it a risky swing trade candidate. Entry near 950–960 ₹ is possible for short-term traders, but strict stop-loss below 915 ₹ is essential. For holders, exit near 1,050–1,065 ₹ resistance is advisable unless earnings momentum improves significantly.