ADANIENT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | ADANIENT | Market Cap | 3,23,951 Cr. | Current Price | 2,486 ₹ | High / Low | 2,613 ₹ |
| Stock P/E | 135 | Book Value | 486 ₹ | Dividend Yield | 0.05 % | ROCE | 7.60 % |
| ROE | 5.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,149 ₹ | DMA 200 | 2,232 ₹ |
| Chg in FII Hold | -0.84 % | Chg in DII Hold | -0.01 % | PAT Qtr | 344 Cr. | PAT Prev Qtr | 563 Cr. |
| RSI | 78.0 | MACD | 114 | Volume | 62,60,245 | Avg Vol 1Wk | 49,08,028 |
| Low price | 1,753 ₹ | High price | 2,613 ₹ | PEG Ratio | 10.6 | Debt to equity | 0.18 |
| 52w Index | 85.2 % | Qtr Profit Var | -42.8 % | EPS | 88.1 ₹ | Industry PE | 160 |
Analysis: ADANIENT is trading at ₹2,486, close to its 52-week high (₹2,613) and well above both 50 DMA (₹2,149) and 200 DMA (₹2,232), showing strong momentum. RSI at 78.0 indicates overbought conditions, while MACD is positive (114), confirming bullish sentiment. However, fundamentals are weak: ROCE at 7.60% and ROE at 5.35% are low, and the P/E ratio of 135 compared to industry PE of 160 suggests overvaluation. The PEG ratio of 10.6 highlights poor valuation relative to growth. Quarterly PAT fell sharply (-42.8%), raising concerns about earnings sustainability. Despite short-term momentum, risks are high.
Optimal Entry Price: ₹2,200–2,250 (closer to 200 DMA support, safer entry).
Exit Strategy: If already holding, consider profit booking near ₹2,600–2,610 (recent resistance zone).
✅ Positive
- Price trading above both 50 DMA and 200 DMA, showing strong momentum.
- Debt-to-equity ratio at 0.18, relatively low.
- EPS of ₹88.1 provides earnings visibility.
⚠️ Limitation
- Extremely high P/E ratio (135) compared to industry average (160).
- Weak ROE (5.35%) and ROCE (7.60%), showing poor efficiency.
- PEG ratio of 10.6 indicates overvaluation relative to growth.
- RSI at 78.0 signals overbought conditions, risk of pullback.
📉 Company Negative News
- PAT declined sharply from ₹563 Cr. to ₹344 Cr. quarter-on-quarter (-42.8%).
- FII holdings declined (-0.84%), showing reduced foreign investor confidence.
- Slight reduction in DII holdings (-0.01%).
📈 Company Positive News
- Stock price momentum remains strong, trading near 52-week highs.
- Low debt-to-equity ratio supports financial stability.
🏭 Industry
- Industry PE at 160, indicating high sector valuations.
- Infrastructure and diversified business exposure provide long-term growth potential.
🔎 Conclusion
ADANIENT shows strong short-term momentum but is heavily overvalued with weak efficiency metrics and declining profits. Entry near ₹2,200–2,250 offers a safer risk-reward setup, while profit booking near ₹2,600–2,610 is advisable. Investors should be cautious of valuation risks and earnings volatility.