ELGIEQUIP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | ELGIEQUIP | Market Cap | 19,411 Cr. | Current Price | 611 ₹ | High / Low | 634 ₹ |
| Stock P/E | 54.7 | Book Value | 62.7 ₹ | Dividend Yield | 0.44 % | ROCE | 25.4 % |
| ROE | 19.1 % | Face Value | 1.00 ₹ | DMA 50 | 565 ₹ | DMA 200 | 523 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 1.00 % | PAT Qtr | 83.3 Cr. | PAT Prev Qtr | 99.1 Cr. |
| RSI | 63.3 | MACD | 14.5 | Volume | 8,24,747 | Avg Vol 1Wk | 3,99,703 |
| Low price | 408 ₹ | High price | 634 ₹ | PEG Ratio | 5.34 | Debt to equity | 0.02 |
| 52w Index | 90.0 % | Qtr Profit Var | -16.0 % | EPS | 10.9 ₹ | Industry PE | 45.4 |
📊 ELGIEQUIP shows strong fundamentals but is slightly overvalued for swing trading. ROCE (25.4%) and ROE (19.1%) are healthy, debt-to-equity is very low (0.02), and EPS of 10.9 ₹ supports profitability. However, the P/E ratio (54.7) is higher than the industry average (45.4), and PEG ratio (5.34) indicates expensive growth. RSI at 63.3 suggests moderate strength, while MACD at 14.5 signals bullish momentum. The stock trades above both 50 DMA (565 ₹) and 200 DMA (523 ₹), confirming an uptrend. Volume is significantly higher than average, showing strong participation, though quarterly profit variation (-16%) is a concern.
💡 Optimal Entry Price: Around 565–575 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider exiting near 630–640 ₹ (recent high resistance) or trail stop-loss to lock gains if momentum continues.
Positive
- 📌 [Strong ROCE](ca://s?q=ELGIEQUIP_ROCE): ROCE of 25.4% reflects efficient capital use.
- 📌 [Healthy ROE](ca://s?q=ELGIEQUIP_ROE): ROE of 19.1% indicates solid shareholder returns.
- 📌 [Low Debt](ca://s?q=ELGIEQUIP_debt_equity): Debt-to-equity ratio of 0.02 shows financial stability.
- 📌 [DII Support](ca://s?q=ELGIEQUIP_DII_holdings): Domestic institutional investors increased holdings by 1.00%.
Limitation
- ⚠️ [High Valuation](ca://s?q=ELGIEQUIP_high_PE): P/E ratio of 54.7 is above industry average (45.4).
- ⚠️ [Profit Decline](ca://s?q=ELGIEQUIP_quarterly_profit): Quarterly profit variation at -16% shows weakening earnings momentum.
- ⚠️ [FII Reduction](ca://s?q=ELGIEQUIP_FII_holdings): Foreign institutional investors reduced holdings by 0.91%.
Company Negative News
- ❌ [Quarterly Profit Drop](ca://s?q=ELGIEQUIP_profit_drop): PAT fell from 99.1 Cr to 83.3 Cr.
- ❌ [FII Exit](ca://s?q=ELGIEQUIP_FII_exit): Foreign investors reduced holdings significantly.
Company Positive News
- ✅ [Strong EPS](ca://s?q=ELGIEQUIP_EPS): EPS of 10.9 ₹ highlights profitability.
- ✅ [Dividend Yield](ca://s?q=ELGIEQUIP_dividend_yield): Yield of 0.44% provides shareholder returns.
- ✅ [Market Cap Strength](ca://s?q=ELGIEQUIP_market_cap): Market cap of 19,411 Cr indicates industry relevance.
Industry
- 🏭 [Industry PE](ca://s?q=Engineering_industry_PE): Industry average P/E is 45.4, lower than ELGIEQUIP’s valuation.
- 🏭 [Sector Outlook](ca://s?q=Engineering_sector_outlook): Engineering sector benefits from infrastructure growth and industrial demand.
Conclusion
📈 ELGIEQUIP is a moderately strong candidate for swing trading. Fundamentals are solid, debt is negligible, and technicals show bullish momentum. Entry near 565–575 ₹ offers a favorable setup, with exit targets around 630–640 ₹. Risks include profit decline and FII reduction, but overall strength and DII support make it suitable for cautious swing trades.