⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASIANPAINT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | ASIANPAINT | Market Cap | 2,35,229 Cr. | Current Price | 2,453 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 58.5 | Book Value | 199 ₹ | Dividend Yield | 1.01 % | ROCE | 27.3 % |
| ROE | 20.7 % | Face Value | 1.00 ₹ | DMA 50 | 2,671 ₹ | DMA 200 | 2,595 ₹ |
| Chg in FII Hold | 1.14 % | Chg in DII Hold | -0.42 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 956 Cr. |
| RSI | 33.9 | MACD | -102 | Volume | 10,10,494 | Avg Vol 1Wk | 18,44,149 |
| Low price | 2,125 ₹ | High price | 2,986 ₹ | PEG Ratio | 8.28 | Debt to equity | 0.08 |
| 52w Index | 38.1 % | Qtr Profit Var | 3.80 % | EPS | 39.4 ₹ | Industry PE | 34.2 |
📊 ASIANPAINT shows moderate potential for swing trading. The RSI at 33.9 indicates oversold conditions, suggesting a possible rebound. However, the MACD at -102 reflects strong bearish momentum, and the stock is trading below both 50 DMA (2,671 ₹) and 200 DMA (2,595 ₹), confirming weakness. Optimal entry would be near 2,350–2,400 ₹, close to support levels. If already holding, consider exiting around 2,600–2,650 ₹, near the 200 DMA, unless momentum improves.
✅ Positive
- Strong ROCE (27.3%) and ROE (20.7%) highlight efficient capital use.
- Quarterly PAT improved (956 Cr. → 1,146 Cr.), showing earnings growth.
- Dividend yield of 1.01% provides investor stability.
- Low debt-to-equity ratio (0.08) indicates financial strength.
- FII holdings increased by 1.14%, reflecting foreign investor confidence.
⚠️ Limitation
- High P/E ratio of 58.5 compared to industry PE of 34.2, suggesting overvaluation.
- PEG ratio of 8.28 indicates expensive valuation relative to growth.
- Trading volume (10.1 lakh) below 1-week average (18.4 lakh), showing weak participation.
- DII holdings decreased (-0.42%), reducing domestic institutional support.
📉 Company Negative News
- Stock trading below both 50 DMA and 200 DMA indicates bearish sentiment.
- Weak momentum reflected in MACD (-102).
📈 Company Positive News
- Quarterly earnings growth supports near-term fundamentals.
- Strong efficiency metrics (ROCE and ROE).
- Dividend yield adds investor appeal.
🏭 Industry
- Industry PE at 34.2 is much lower than ASIANPAINT’s 58.5, highlighting premium valuation.
- Paints and coatings sector remains resilient with steady demand, though competition is rising.
🔎 Conclusion
ASIANPAINT is a cautious swing trade candidate. Entry near 2,350–2,400 ₹ offers a favorable risk-reward setup. Exit should be considered around 2,600–2,650 ₹ unless momentum strengthens. Traders should monitor volume recovery and RSI movement before committing heavily.