EIHOTEL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.2

📊 EIHOTEL shows moderate potential for swing trading but faces weak technical momentum. Current price (₹363) is below both 50 DMA (₹379) and 200 DMA (₹380), reflecting bearish sentiment. RSI at 31.8 indicates oversold conditions, while MACD (-3.76) confirms negative momentum. Fundamentals remain strong with ROCE (21.9%) and ROE (17.5%), supported by low debt (0.04). Valuation is fair with a P/E of 32.4 compared to industry average of 34.1. Optimal entry would be near ₹350–₹360 if support holds. If already holding, exit near ₹380–₹390 resistance unless momentum strengthens further.

✅ Positive

• 📈 Strong ROCE (21.9%) and ROE (17.5%) show efficient capital use
• 📉 Low debt-to-equity (0.04) ensures financial stability
• 📊 EPS at ₹11.0 supports valuation strength
• 📈 DII holding increased (+0.39%), showing domestic investor confidence
• 📊 PEG ratio at 0.31 indicates reasonable growth valuation

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI oversold but MACD negative
• 📉 Quarterly PAT declined from ₹134 Cr. to ₹97.6 Cr. (-15.8%)
• ⚠️ Dividend yield at 0.42% is modest

🚨 Company Negative News

• 📉 Short-term profit decline (-15.8%)
• ⚠️ Weak technical indicators despite strong fundamentals

🌟 Company Positive News

• 📈 Strong fundamentals with high ROCE and ROE
• 📊 Debt-free balance sheet strengthens financial outlook
• 📈 Domestic institutional investors increasing stake

🏭 Industry

• 📊 Industry P/E at 34.1, close to company’s 32.4, suggesting fair valuation
• 📈 Hospitality sector has long-term growth potential with rising travel and tourism demand

📌 Conclusion

⚖️ EIHOTEL is a fair swing trade candidate with strong fundamentals but weak technical momentum. Entry is favorable near ₹350–₹360 on dips. For existing holders, exit near ₹380–₹390 resistance is advisable unless RSI and MACD show stronger recovery.

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