BRITANNIA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis for BRITANNIA Industries Ltd.

Swing Trade Rating: 3.5

📉 Technical Overview

Current Price ₹5,626 is hovering just below the 50-DMA ₹5,638, and above the 200-DMA ₹5,375, signaling consolidation.

RSI (42.7) shows weak momentum, slightly above oversold—no strong reversal signal.

MACD (-11.2) in negative zone → still bearish.

Volume spike above weekly average → rise in interest, but not yet directional.

🔍 Takeaway: Technically, the stock is in a range with signs of exhaustion after a prior downtrend. Not ideal for aggressive swing entry yet, but worth monitoring.

🧮 Fundamental Snapshot

P/E (61.7) > Industry PE (59.1) → mildly overvalued.

PEG Ratio (4.70) → high, suggesting growth may not justify valuation.

ROCE (53.0%), ROE (52.9%) → exceptional profitability and capital efficiency.

EPS ₹90.4, Book Value ₹181 → strong earnings base, but premium priced.

PAT decline (₹582 Cr → ₹559 Cr) → flat quarter performance, not a concern unless trend persists.

Low debt (Debt-to-Equity 0.29) → stable financials.

FII slightly reducing, DII increasing → mixed institutional sentiment.

🧠 Verdict: Fundamentally robust with standout efficiency metrics. Valuation and technical weakness create hesitation for swing entry.

✅ Optimal Entry Price

Monitor for dip towards ₹5,520–₹5,550 range.

Entry ideal if RSI rebounds above 50 and MACD flattens or turns positive.

Entry should be confirmed with price regaining above 50-DMA on volume.

Stop-Loss: ₹5,440 — below recent support and psychological zone.

🚪 Exit Strategy (If Holding Already)

If already holding, use ₹5,700–₹5,750 as first profit zone (minor resistance).

Extended Target: ₹5,850–₹5,900 on volume surge and RSI >60.

Trail Stop-Loss to ₹5,580 once price breaks ₹5,700.

📦 Final Take

BRITANNIA presents excellent fundamentals but currently lacks the technical firepower for a confident swing trade entry. If you're already holding, tight management and strategic exits around resistance zones can protect gains. Otherwise, patience till MACD crossover and RSI uplift could make this a worthy swing candidate.

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