EMAMILTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | EMAMILTD | Market Cap | 17,702 Cr. | Current Price | 406 ₹ | High / Low | 655 ₹ |
| Stock P/E | 20.2 | Book Value | 71.8 ₹ | Dividend Yield | 2.46 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 473 ₹ | DMA 200 | 529 ₹ |
| Chg in FII Hold | -1.90 % | Chg in DII Hold | 1.72 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 23.0 | MACD | -20.2 | Volume | 2,68,390 | Avg Vol 1Wk | 7,83,266 |
| Low price | 404 ₹ | High price | 655 ₹ | PEG Ratio | 25.6 | Debt to equity | 0.01 |
| 52w Index | 0.72 % | Qtr Profit Var | 21.3 % | EPS | 19.8 ₹ | Industry PE | 41.8 |
📊 EMAMILTD has strong fundamentals with high ROCE (34.0%) and ROE (31.5%), supported by a very low debt-to-equity ratio (0.01). The dividend yield of 2.46% adds income support. However, technical indicators are weak (RSI 23.0, MACD -20.2), showing oversold conditions and bearish momentum. The stock is trading well below DMA 50 (473 ₹) and DMA 200 (529 ₹), reflecting short-term weakness. This makes it a cautious swing trade candidate, with potential for a rebound if entered near strong support.
💡 Optimal Entry Price: Around 400–410 ₹ (close to support zone near 404 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 470–480 ₹ (DMA 50 resistance) unless momentum improves.
Positive
- Strong ROCE (34.0%) and ROE (31.5%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.01) shows excellent financial stability.
- Dividend yield of 2.46% provides attractive income support.
- Quarterly PAT growth (339 Cr. vs 182 Cr.) highlights operational strength.
Limitation
- Current price (406 ₹) is well below DMA 50 and DMA 200, reflecting technical weakness.
- RSI at 23.0 indicates oversold conditions but also weak momentum.
- PEG ratio of 25.6 suggests valuation is stretched relative to growth.
Company Negative News
- FII holdings decreased significantly (-1.90%), showing reduced foreign investor confidence.
- Stock trading near 52-week low (404 ₹), reflecting bearish sentiment.
Company Positive News
- Quarterly PAT surged (339 Cr. vs 182 Cr.), showing strong earnings momentum.
- DII holdings increased (+1.72%), showing domestic institutional support.
- EPS of 19.8 ₹ supports valuation strength.
Industry
- Industry P/E is 41.8, while company P/E is 20.2, suggesting EMAMILTD is undervalued relative to peers.
- Consumer goods sector remains resilient, offering long-term stability.
Conclusion
⚠️ EMAMILTD is a cautious swing trade candidate. Strong fundamentals and undervaluation relative to industry support potential upside, but weak technicals and reduced FII interest require careful positioning. Entry near 400–410 ₹ offers favorable risk-reward, with exit targets around 470–480 ₹. A strict stop-loss near 395 ₹ is advisable to manage downside risk.