AIIL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 4.2

📊 AIIL shows strong potential for swing trading. The stock is trading well above its 50 DMA (2,786 ₹) and 200 DMA (2,557 ₹), indicating solid technical support. Despite a recent dip in quarterly profits, fundamentals remain robust with high ROE (34.1%) and ROCE (30.8%). Momentum indicators are neutral (RSI 49.1, MACD negative), suggesting consolidation before the next move. The optimal entry price would be around 2,850–2,880 ₹ if the stock sustains above 2,850 ₹. If already holding, consider exiting near 3,250–3,300 ₹ (recent high resistance) or on weakness below 2,780 ₹.

✅ Positive

• 📈 Strong return ratios (ROE 34.1%, ROCE 30.8%).
• 💰 Attractive valuation (P/E 12.2 vs Industry PE 21.2).
• 📊 EPS of 237 ₹ indicates strong earnings power.
• 📈 Significant increase in FII holdings (+6.17%).
• 📉 PEG ratio of 0.14 suggests undervaluation relative to growth.

⚠️ Limitation

• 📉 Quarterly profit declined (PAT down from 941 Cr. to 765 Cr., -9.38%).
• 📉 Very low dividend yield (0.04%).
• 📉 Weak trading volume compared to average (37,779 vs 1,33,188).
• 📉 MACD negative (-31.2), showing short-term weakness.

🚨 Company Negative News

• 📉 No major negative news reported, but profit decline may weigh on sentiment.

🌟 Company Positive News

• 📈 Strong institutional interest with FII stake rising significantly.
• 💼 Solid fundamentals with high efficiency and low debt (Debt to equity: 0.17).

🏭 Industry

• 📊 Industry PE at 21.2, higher than AIIL’s P/E, suggesting undervaluation.
• 🏭 Sector outlook remains favorable with strong demand drivers and growth opportunities.

📌 Conclusion

AIIL is a strong candidate for swing trading with entry near 2,850–2,880 ₹ and exit near 3,250–3,300 ₹. Attractive valuations, high return ratios, and rising FII interest support the bullish case. However, traders should watch for profit weakness and maintain a stop-loss below 2,780 ₹ to manage risk.

I can also prepare a side-by-side comparison of AIIL with AUROPHARMA and ATUL to highlight which offers the best swing trade setup.