AKZOINDIA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | AKZOINDIA | Market Cap | 13,124 Cr. | Current Price | 2,885 ₹ | High / Low | 3,916 ₹ |
| Stock P/E | 34.9 | Book Value | 495 ₹ | Dividend Yield | 3.47 % | ROCE | 41.7 % |
| ROE | 32.2 % | Face Value | 10.0 ₹ | DMA 50 | 3,107 ₹ | DMA 200 | 3,307 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | 6.81 % | PAT Qtr | 94.6 Cr. | PAT Prev Qtr | 83.4 Cr. |
| RSI | 39.8 | MACD | -106 | Volume | 23,153 | Avg Vol 1Wk | 44,382 |
| Low price | 2,649 ₹ | High price | 3,916 ₹ | PEG Ratio | 2.50 | Debt to equity | 0.03 |
| 52w Index | 18.6 % | Qtr Profit Var | -12.9 % | EPS | 429 ₹ | Industry PE | 34.2 |
📊 AKZOINDIA shows moderate potential for swing trading. The current price (2,885 ₹) is below both the 50 DMA (3,107 ₹) and 200 DMA (3,307 ₹), reflecting short-term weakness. RSI at 39.8 suggests the stock is approaching oversold territory, while MACD (-106) indicates bearish momentum. Strong fundamentals such as ROCE (41.7%) and ROE (32.2%) provide long-term support, and dividend yield (3.47%) adds investor appeal. However, the recent quarterly profit decline (-12.9%) raises caution for short-term trades.
✅ Optimal Entry Price: Around 2,750–2,800 ₹ (near support zone close to 2,649 ₹).
📈 Exit Strategy: If already holding, consider exiting near 3,100–3,200 ₹ (resistance around DMA levels) or set a stop-loss below 2,650 ₹.
Positive
- Strong ROCE (41.7%) and ROE (32.2%) indicate excellent capital efficiency.
- Attractive dividend yield of 3.47% provides passive income.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Institutional support with DII holdings up 6.81% and FII holdings up 0.69%.
Limitation
- Price trading below DMA levels signals weak short-term momentum.
- Quarterly profit declined (-12.9%), raising concerns about near-term earnings.
- Low trading volume (23,153) compared to average weekly volume (44,382), showing reduced liquidity.
- PEG ratio of 2.50 suggests the stock is relatively expensive compared to growth prospects.
Company Negative News
- No major external negative news reported, but earnings decline is a concern.
Company Positive News
- PAT improved sequentially (94.6 Cr vs 83.4 Cr), showing operational resilience despite YoY decline.
- EPS of 429 ₹ reflects strong profitability.
Industry
- Industry P/E at 34.2 is aligned with the company’s P/E (34.9), suggesting fair sector valuation.
- Paints and coatings industry benefits from steady demand in housing and infrastructure.
Conclusion
⚖️ AKZOINDIA is a fundamentally strong company with high efficiency and dividend support, but faces short-term weakness due to declining profits and bearish technical indicators. Entry near 2,750–2,800 ₹ offers a better risk-reward setup. Exit near 3,100–3,200 ₹ is advisable if already holding. Swing traders should remain cautious and use strict stop-loss discipline.