ELGIEQUIP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | ELGIEQUIP | Market Cap | 15,595 Cr. | Current Price | 492 ₹ | High / Low | 608 ₹ |
| Stock P/E | 44.4 | Book Value | 57.9 ₹ | Dividend Yield | 0.45 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 461 ₹ | DMA 200 | 494 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 90.8 Cr. | PAT Prev Qtr | 81.5 Cr. |
| RSI | 65.0 | MACD | -0.78 | Volume | 5,74,997 | Avg Vol 1Wk | 9,06,613 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.90 | Debt to equity | 0.01 |
| 52w Index | 46.7 % | Qtr Profit Var | -7.24 % | EPS | 11.1 ₹ | Industry PE | 38.6 |
📊 ELGIEQUIP presents a moderately strong case for swing trading. The fundamentals are solid with high ROCE (28.4%) and ROE (21.9%), very low debt-to-equity (0.01), and consistent profitability (EPS 11.1 ₹). The stock is trading near its 200 DMA (494 ₹), which acts as a key resistance level. RSI at 65.0 indicates bullish momentum, though MACD (-0.78) shows slight short-term weakness. The high P/E (44.4) compared to industry PE (38.6) suggests premium valuation. Institutional activity is mixed, with FII holdings down but DII holdings up.
💡 Optimal Entry Price: Around 470–485 ₹ (near support zone, close to 50 DMA).
🚪 Exit Strategy: If already holding, consider exiting near 520–540 ₹ (resistance zone above 200 DMA) unless momentum strengthens further.
✅ Positive
- Strong ROCE (28.4%) and ROE (21.9%) indicate efficient capital use.
- Debt-to-equity ratio of 0.01 shows virtually debt-free status.
- EPS of 11.1 ₹ highlights consistent profitability.
- DII holdings increased (+1.84%), showing domestic institutional confidence.
⚠️ Limitation
- High P/E ratio (44.4) compared to industry PE (38.6).
- MACD slightly negative (-0.78), signaling short-term weakness.
- Volume lower than weekly average, showing reduced trading activity.
📉 Company Negative News
- Quarterly profit variation declined (-7.24%).
- FII holdings decreased (-3.01%), showing reduced foreign investor confidence.
📈 Company Positive News
- PAT improved sequentially from 81.5 Cr. to 90.8 Cr.
- Dividend yield of 0.45% provides shareholder returns.
- Strong fundamentals compared to peers in the industry.
🏭 Industry
- Industry PE at 38.6, slightly lower than company’s PE, suggesting premium valuation.
- Sector outlook remains positive, supporting medium-term growth potential.
🔎 Conclusion
ELGIEQUIP is fundamentally strong with bullish momentum but faces valuation concerns and short-term technical weakness. It offers a moderate swing trade opportunity with entry around 470–485 ₹ and exit near 520–540 ₹. Traders should monitor institutional activity and momentum indicators closely before aggressive positioning.