ASIANPAINT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ASIANPAINT | Market Cap | 2,09,630 Cr. | Current Price | 2,186 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 52.2 | Book Value | 199 ₹ | Dividend Yield | 1.13 % | ROCE | 27.3 % |
| ROE | 20.7 % | Face Value | 1.00 ₹ | DMA 50 | 2,420 ₹ | DMA 200 | 2,527 ₹ |
| Chg in FII Hold | 1.14 % | Chg in DII Hold | -0.42 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 956 Cr. |
| RSI | 32.6 | MACD | -69.5 | Volume | 9,57,219 | Avg Vol 1Wk | 9,81,118 |
| Low price | 2,163 ₹ | High price | 2,986 ₹ | PEG Ratio | 7.38 | Debt to equity | 0.08 |
| 52w Index | 2.84 % | Qtr Profit Var | 3.80 % | EPS | 39.4 ₹ | Industry PE | 30.9 |
📊 ASIANPAINT shows strong fundamentals but weak technicals, making it a cautious candidate for swing trading. The RSI at 32.6 suggests oversold conditions, while MACD remains negative (-69.5), confirming bearish momentum. The stock is trading below both its 50 DMA (2,420 ₹) and 200 DMA (2,527 ₹), reflecting short-term weakness. Fundamentals are solid: ROCE (27.3%) and ROE (20.7%) highlight efficiency, and EPS stands at 39.4 ₹. However, valuation is stretched with a P/E of 52.2 vs. industry 30.9, and PEG ratio of 7.38 suggests overvaluation relative to growth. PAT improved (1,146 Cr vs. 956 Cr), showing operational strength. Institutional activity is mixed, with FII holdings up (+1.14%) but DII holdings down (-0.42%).
💡 Optimal Entry Price: Around 2,170–2,190 ₹ (near support zone).
📈 Exit Strategy if Holding: Consider exiting near 2,400–2,420 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (27.3%) and ROE (20.7%) highlight efficiency.
- EPS of 39.4 ₹ supports earnings strength.
- Dividend yield of 1.13% adds investor appeal.
- Quarterly PAT growth (1,146 Cr vs. 956 Cr) shows operational improvement.
- FII holdings increased (+1.14%), reflecting foreign investor confidence.
⚠️ Limitation
- High P/E (52.2) compared to industry average (30.9).
- PEG ratio of 7.38 suggests overvaluation relative to growth.
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- Volume slightly lower than average, reducing short-term momentum.
- DII holdings decreased (-0.42%), showing reduced domestic institutional support.
📉 Company Negative News
- Decline in DII holdings (-0.42%) reflects reduced domestic institutional confidence.
📈 Company Positive News
- Strong quarterly PAT growth highlights operational resilience.
- FII confidence adds stability to outlook.
🏭 Industry
- Industry P/E at 30.9 is lower than ASIANPAINT’s 52.2, suggesting peers may be better valued.
- Paints and coatings sector remains resilient, driven by housing and infrastructure demand.
🔎 Conclusion
ASIANPAINT is fundamentally strong but technically weak, making it a cautious swing trade candidate. Entry near 2,170–2,190 ₹ may offer a rebound opportunity, but exits should be considered around 2,400–2,420 ₹. While valuations are stretched, strong efficiency and profit growth provide confidence for moderate swing trading potential.