ELGIEQUIP - Swing Trade Analysis

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

Swing Trade Rating: 4.0

📊 Analysis Summary

ELGIEQUIP is a technically recovering and fundamentally solid stock, showing signs of upward momentum after a steep correction from its 52-week high. While the valuation is slightly stretched, strong quarterly profit growth and healthy return ratios make it a reasonable swing trade candidate, especially if entered near support with confirmation.

🔍 Technical Indicators

RSI (55.5): Neutral to bullish — room for upside.

MACD (11.1): Positive — suggests early momentum.

Price vs DMA

Current Price (₹563) is above both 50 DMA (₹534) and 200 DMA (₹539) — bullish crossover.

Volume: Well below weekly average — breakout not yet confirmed.

📈 Fundamental Snapshot

P/E (51.1) vs Industry PE (41.8): Overvalued — priced above peers.

PEG Ratio (1.88): Acceptable — growth somewhat justifies valuation.

ROE (20.1%) & ROCE (21.9%): Strong — efficient capital use.

EPS (₹11.0) vs Price (₹563): Premium valuation.

Qtr Profit Growth (+33.8%): Strong — earnings momentum.

FII Holding ↓ (-1.47%), DII Holding ↑ (+0.25%)**: Mixed institutional sentiment.

Debt to Equity (0.31): Moderate — manageable leverage.

Dividend Yield (0.39%): Modest — not a swing factor.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹545–₹555 range, near moving average support.

Confirm with RSI crossing 60 and volume pickup.

Avoid entering above ₹570 unless momentum strengthens.

🚪 Exit Strategy (If Already Holding)

Exit near ₹735–₹750, close to 52-week high resistance.

If price drops below ₹530, consider stop-loss at ₹515 to protect downside.

⚖️ Final Verdict

ELGIEQUIP is a technically promising swing trade with solid fundamentals and improving momentum. While valuation is on the higher side, strong earnings growth and bullish crossover make it suitable for short-term trading. Best entered near support with confirmation, and exited near previous highs.

Edit in a page