EMAMILTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | EMAMILTD | Market Cap | 21,360 Cr. | Current Price | 489 ₹ | High / Low | 655 ₹ |
| Stock P/E | 24.4 | Book Value | 71.8 ₹ | Dividend Yield | 1.64 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 511 ₹ | DMA 200 | 551 ₹ |
| Chg in FII Hold | -1.90 % | Chg in DII Hold | 1.72 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 42.9 | MACD | -9.93 | Volume | 31,80,085 | Avg Vol 1Wk | 8,42,020 |
| Low price | 470 ₹ | High price | 655 ₹ | PEG Ratio | 30.9 | Debt to equity | 0.01 |
| 52w Index | 10.4 % | Qtr Profit Var | 21.3 % | EPS | 19.8 ₹ | Industry PE | 46.7 |
📊 EMAMILTD shows moderate potential for swing trading. The fundamentals are strong with high ROCE (34.0%) and ROE (31.5%), very low debt-to-equity (0.01), and a healthy dividend yield (1.64%). The P/E ratio (24.4) is attractive compared to the industry average (46.7), suggesting undervaluation. However, technical indicators are weak: RSI at 42.9 indicates bearish momentum, MACD (-9.93) is negative, and the stock trades below both 50 DMA (511 ₹) and 200 DMA (551 ₹). Institutional activity is mixed, with FII holdings down but DII holdings up. Despite strong fundamentals, short-term weakness limits swing trade potential.
💡 Optimal Entry Price: Around 470–485 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 510–530 ₹ (resistance zone around DMA levels) unless momentum improves.
✅ Positive
- Strong ROCE (34.0%) and ROE (31.5%) reflect efficient capital use.
- Debt-to-equity ratio of 0.01 shows virtually debt-free status.
- Dividend yield of 1.64% provides shareholder returns.
- PAT improved significantly from 182 Cr. to 339 Cr.
- DII holdings increased (+1.72%), showing domestic institutional support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- RSI at 42.9 and MACD negative (-9.93), indicating weak momentum.
- PEG ratio of 30.9 suggests overvaluation relative to growth.
📉 Company Negative News
- FII holdings decreased (-1.90%), showing reduced foreign investor confidence.
- Technical weakness with bearish indicators.
📈 Company Positive News
- Quarterly profit growth (+21.3%) with PAT rising to 339 Cr.
- EPS of 19.8 ₹ highlights consistent profitability.
- Strong fundamentals compared to industry peers.
🏭 Industry
- Industry PE at 46.7, much higher than company’s PE (24.4), suggesting undervaluation.
- Consumer goods sector remains resilient with steady demand.
🔎 Conclusion
EMAMILTD is fundamentally strong and undervalued compared to peers, but short-term technical weakness limits swing trade potential. Entry around 470–485 ₹ offers a safer position, with exit near 510–530 ₹. Traders should monitor momentum indicators closely before aggressive entry.