ELGIEQUIP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | ELGIEQUIP | Market Cap | 14,800 Cr. | Current Price | 467 ₹ | High / Low | 608 ₹ |
| Stock P/E | 39.9 | Book Value | 57.9 ₹ | Dividend Yield | 0.47 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 491 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 40.2 | MACD | -6.22 | Volume | 2,28,493 | Avg Vol 1Wk | 3,66,185 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.01 |
| 52w Index | 35.3 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 34.3 |
📊 ELGIEQUIP shows strong fundamentals with high ROCE (28.4%) and ROE (21.9%), supported by a very low debt-to-equity ratio (0.01). The company has delivered consistent profit growth (PAT 99.1 Cr. vs 90.8 Cr.), and EPS of 11.4 ₹ supports valuation. However, technical indicators (RSI 40.2, MACD -6.22) suggest short-term weakness, and the stock is trading below both DMA 50 (491 ₹) and DMA 200 (497 ₹). This makes it a moderately good candidate for swing trading if entered near support levels.
💡 Optimal Entry Price: Around 455–465 ₹ (close to support zone near 450 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 490–500 ₹ (DMA resistance) unless momentum strengthens.
Positive
- Strong ROCE (28.4%) and ROE (21.9%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.01) shows excellent financial stability.
- Quarterly PAT growth (+23.7%) highlights operational strength.
- DII holdings increased (+1.84%), showing domestic institutional confidence.
Limitation
- Current price (467 ₹) is below both DMA 50 and DMA 200, reflecting technical weakness.
- RSI and MACD indicate bearish momentum.
- PEG ratio of 1.71 suggests valuation is slightly stretched compared to growth.
Company Negative News
- FII holdings decreased significantly (-3.01%), showing reduced foreign investor confidence.
- Stock trading below key moving averages, indicating short-term pressure.
Company Positive News
- Quarterly PAT improved (99.1 Cr. vs 90.8 Cr.).
- EPS of 11.4 ₹ supports valuation strength.
- Dividend yield of 0.47% provides modest income support.
Industry
- Industry P/E is 34.3, while company P/E is 39.9, showing a slight premium valuation.
- Sector outlook remains positive, with industrial equipment demand supporting growth.
Conclusion
✅ ELGIEQUIP is a moderately good swing trade candidate. Strong fundamentals and earnings growth support potential upside, but technical weakness and reduced FII interest require caution. Entry near 455–465 ₹ offers favorable risk-reward, with exit targets around 490–500 ₹. A strict stop-loss near 445 ₹ is advisable to manage downside risk.