ASIANPAINT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | ASIANPAINT | Market Cap | 2,62,216 Cr. | Current Price | 2,734 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 60.0 | Book Value | 217 ₹ | Dividend Yield | 1.01 % | ROCE | 27.8 % |
| ROE | 22.0 % | Face Value | 1.00 ₹ | DMA 50 | 2,596 ₹ | DMA 200 | 2,533 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.66 % | PAT Qtr | 1,161 Cr. | PAT Prev Qtr | 1,147 Cr. |
| RSI | 62.1 | MACD | 50.6 | Volume | 8,68,959 | Avg Vol 1Wk | 11,76,836 |
| Low price | 2,115 ₹ | High price | 2,986 ₹ | PEG Ratio | 26.9 | Debt to equity | 0.11 |
| 52w Index | 71.1 % | Qtr Profit Var | 42.0 % | EPS | 44.2 ₹ | Industry PE | 35.5 |
ASIANPAINT shows strong fundamentals but trades at stretched valuations. The stock P/E is 60.0 compared to the industry average of 35.5, indicating premium pricing. ROCE (27.8%) and ROE (22.0%) are solid, while debt-to-equity at 0.11 is low, reducing financial risk. EPS is healthy at 44.2 ₹, and quarterly profit improved slightly (1,161 Cr. vs 1,147 Cr.). Dividend yield of 1.01% adds investor value. Technically, RSI at 62.1 suggests the stock is nearing overbought territory, while MACD is positive (50.6), showing momentum. The stock trades above DMA 50 (2,596 ₹) and DMA 200 (2,533 ₹), reflecting bullish undertones but limited upside near its 52-week high (2,986 ₹).
💡 Optimal Entry Price: Around 2,650–2,700 ₹, closer to DMA 50 support.
📈 Exit Strategy: If already holding, consider exiting near 2,850–2,900 ₹ or on weakness if RSI crosses above 65.
✅ Positive
- 📈 Strong ROCE (27.8%) and ROE (22.0%).
- 📊 EPS of 44.2 ₹ supports earnings strength.
- 💰 Dividend yield of 1.01% provides shareholder returns.
- 🌍 Increase in DII holding (+0.66%).
- 📈 Trading above DMA 50 and DMA 200, showing bullish momentum.
⚠️ Limitation
- 📉 Very high P/E ratio (60.0) vs industry average (35.5).
- 📊 PEG ratio of 26.9 suggests overvaluation relative to growth.
- 📉 RSI at 62.1 indicates near overbought conditions.
- 📉 Decline in FII holding (-0.67%).
📰 Company Negative News
- ⚠️ Valuation concerns due to high P/E and PEG ratios.
- 📉 Institutional investors reduced FII holdings.
🌟 Company Positive News
- 🚀 Quarterly profit growth of 42% YoY.
- 📊 EPS remains strong, supporting long-term fundamentals.
- 🌍 Increase in DII holdings shows domestic investor confidence.
🏭 Industry
- 📈 Industry P/E at 35.5, much lower than company’s 60.0, highlighting premium valuation.
- 🌍 Paints and coatings industry outlook remains favorable with strong demand drivers.
📌 Conclusion
ASIANPAINT is a moderately strong candidate for swing trading, supported by solid fundamentals and bullish technicals. Entry is safer around 2,650–2,700 ₹ near DMA 50. If already holding, exit near 2,850–2,900 ₹ to secure gains. Short-term traders should remain cautious as RSI indicates near overbought conditions and valuations are stretched relative to industry peers.