ANANDRATHI - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | ANANDRATHI | Market Cap | 31,024 Cr. | Current Price | 1,869 ₹ | High / Low | 1,992 ₹ |
| Stock P/E | 79.2 | Book Value | 61.8 ₹ | Dividend Yield | 0.35 % | ROCE | 57.5 % |
| ROE | 45.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,748 ₹ | DMA 200 | 1,559 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.05 % | PAT Qtr | 102 Cr. | PAT Prev Qtr | 99.8 Cr. |
| RSI | 69.1 | MACD | 11.6 | Volume | 9,85,537 | Avg Vol 1Wk | 5,77,493 |
| Low price | 1,010 ₹ | High price | 1,992 ₹ | PEG Ratio | 2.44 | Debt to equity | 0.08 |
| 52w Index | 87.5 % | Qtr Profit Var | 41.1 % | EPS | 23.6 ₹ | Industry PE | 56.6 |
ANANDRATHI shows strong profitability metrics with ROCE at 57.5% and ROE at 45.3%, supported by low debt-to-equity (0.08). However, the stock trades at a very high P/E of 79.2 compared to the industry average of 56.6, indicating overvaluation. EPS is modest at 23.6 ₹, and dividend yield is low at 0.35%. Technically, RSI at 69.1 suggests the stock is approaching overbought territory, while MACD is positive (11.6), showing momentum. The stock is trading above both DMA 50 (1,748 ₹) and DMA 200 (1,559 ₹), reflecting bullish undertones. Quarterly profit growth is steady (102 Cr. vs 99.8 Cr.), but valuations remain stretched.
💡 Optimal Entry Price: Around 1,750–1,800 ₹, closer to DMA 50 support.
📈 Exit Strategy: If already holding, consider exiting near 1,950–2,000 ₹ or on weakness if RSI crosses above 70.
✅ Positive
- 📈 Strong ROCE (57.5%) and ROE (45.3%).
- 💰 Low debt to equity ratio (0.08).
- 📊 EPS of 23.6 ₹ supports earnings strength.
- 🌍 Slight increase in FII holding (+0.12%).
- 📈 Trading above DMA 50 and DMA 200, showing bullish momentum.
⚠️ Limitation
- 📉 Very high P/E ratio (79.2) vs industry average (56.6).
- 📊 Low dividend yield (0.35%).
- 📉 RSI at 69.1 indicates near overbought conditions.
- 📊 PEG ratio of 2.44 suggests overvaluation relative to growth.
- 📉 Decline in DII holding (-0.05%).
📰 Company Negative News
- ⚠️ Valuation concerns due to high P/E.
- 📉 Dividend yield remains low despite profitability.
🌟 Company Positive News
- 🚀 Quarterly profit growth of 41.1% YoY.
- 📊 EPS remains stable with consistent profitability.
- 🌍 Increase in FII holdings supports investor confidence.
🏭 Industry
- 📈 Industry P/E at 56.6, lower than company’s 79.2, showing ANANDRATHI trades at a premium.
- 🌍 Financial services industry outlook remains favorable with strong demand drivers.
📌 Conclusion
ANANDRATHI is a moderately strong candidate for swing trading, supported by excellent profitability and bullish technicals. Entry is safer around 1,750–1,800 ₹ near DMA 50. If already holding, exit near 1,950–2,000 ₹ to secure gains. Short-term traders should remain cautious as RSI is close to overbought and valuations are stretched relative to industry peers.