EMAMILTD - Swing Trade Analysis

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

Swing Trade Rating: 3.5

📊 Analysis Summary

EMAMILTD has strong fundamentals with excellent ROE and ROCE, low debt, and a decent dividend yield. However, the stock is currently in a technical downtrend, trading below key moving averages with weak momentum indicators. The extremely high PEG ratio and significant drop from its 52-week high suggest that the stock is not ideal for immediate swing trading, but could become attractive if a reversal pattern emerges.

🔍 Technical Indicators

RSI (38.4): Bearish — approaching oversold territory, but no clear reversal signal.

MACD (-2.26): Negative — confirms short-term weakness.

Price vs DMA

Current Price (₹561) is below both 50 DMA (₹582) and 200 DMA (₹599) — bearish setup.

Volume: Below average — lack of strong buying interest.

📈 Fundamental Snapshot

P/E (30.5) vs Industry PE (59.2): Undervalued — attractive relative valuation.

PEG Ratio (204): Extremely high — valuation not supported by growth.

ROE (31.2%) & ROCE (33.9%): Excellent — strong capital efficiency.

EPS (₹18.5) vs Price (₹561): Reasonable earnings base.

Qtr Profit Growth (+10.5%): Mild — not a strong catalyst.

FII Holding ↓ (-0.22%), DII Holding ↑ (+0.38%)**: Slight institutional support.

Debt to Equity (0.03): Very low — strong financial health.

Dividend Yield (1.43%): Decent — adds value for holding.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹540–₹550 range, near recent support.

Wait for RSI to cross 45 and MACD to flatten or turn positive.

Confirm with volume pickup and bullish price action before entering.

🚪 Exit Strategy (If Already Holding)

Exit near ₹840–₹860, close to 52-week high resistance.

If price drops below ₹525, consider stop-loss at ₹510 to protect capital.

⚖️ Final Verdict

EMAMILTD is a fundamentally strong but technically weak stock at present. It’s best suited for swing traders who can wait for a confirmed reversal. If already holding, maintain a tight stop-loss and target previous highs for exit.

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