ANANDRATHI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | ANANDRATHI | Market Cap | 24,476 Cr. | Current Price | 2,948 ₹ | High / Low | 3,324 ₹ |
| Stock P/E | 67.7 | Book Value | 100 ₹ | Dividend Yield | 0.36 % | ROCE | 54.0 % |
| ROE | 42.7 % | Face Value | 5.00 ₹ | DMA 50 | 2,997 ₹ | DMA 200 | 2,706 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | 0.72 % | PAT Qtr | 99.8 Cr. | PAT Prev Qtr | 97.2 Cr. |
| RSI | 45.4 | MACD | -36.9 | Volume | 1,44,257 | Avg Vol 1Wk | 2,02,821 |
| Low price | 1,586 ₹ | High price | 3,324 ₹ | PEG Ratio | 2.05 | Debt to equity | 0.10 |
| 52w Index | 78.4 % | Qtr Profit Var | 31.8 % | EPS | 43.6 ₹ | Industry PE | 50.2 |
📊 ANANDRATHI shows strong potential for swing trading. The current price (2,948 ₹) is slightly below the 50 DMA (2,997 ₹) but above the 200 DMA (2,706 ₹), reflecting medium-term strength with mild short-term weakness. RSI at 45.4 indicates the stock is not overbought, while MACD (-36.9) suggests some bearish sentiment. Fundamentals are impressive with ROCE (54.0%) and ROE (42.7%), though valuation is high with P/E (67.7 vs industry 50.2). Quarterly profit growth (99.8 Cr vs 97.2 Cr, +31.8% YoY) adds positive momentum.
✅ Optimal Entry Price: Around 2,900–2,940 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider exiting near 3,150–3,200 ₹ (resistance close to recent highs) or set a stop-loss below 2,850 ₹.
Positive
- Strong ROCE (54.0%) and ROE (42.7%) indicate excellent efficiency and profitability.
- Quarterly profit growth (+31.8%) supports earnings momentum.
- EPS of 43.6 ₹ reflects solid profitability.
- FII holdings increased (+1.10%) and DII holdings increased (+0.72%), showing institutional confidence.
- Low debt-to-equity ratio (0.10) ensures financial stability.
Limitation
- High P/E ratio (67.7) compared to industry average (50.2) suggests overvaluation.
- MACD (-36.9) indicates short-term bearish sentiment.
- Trading volume (1,44,257) is lower than average weekly volume (2,02,821), showing reduced liquidity.
- Dividend yield of 0.36% is relatively low.
Company Negative News
- No major external negative news reported, but high valuation remains a concern.
Company Positive News
- Consistent profit growth and strong fundamentals.
- Institutional investors increasing stake reflects confidence in the company.
Industry
- Industry P/E at 50.2 is lower than company’s P/E (67.7), suggesting relative overvaluation.
- Financial services sector benefits from rising demand for wealth management and advisory services.
Conclusion
⚖️ ANANDRATHI is a strong swing trade candidate with excellent fundamentals and institutional support, though valuation is stretched and short-term technicals show mild weakness. Entry near 2,900–2,940 ₹ offers a favorable risk-reward setup. Exit near 3,150–3,200 ₹ is advisable if already holding. Traders should remain cautious