EMAMILTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | EMAMILTD | Market Cap | 18,032 Cr. | Current Price | 413 ₹ | High / Low | 635 ₹ |
| Stock P/E | 21.2 | Book Value | 72.3 ₹ | Dividend Yield | 2.42 % | ROCE | 29.8 % |
| ROE | 28.3 % | Face Value | 1.00 ₹ | DMA 50 | 417 ₹ | DMA 200 | 479 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.19 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 56.0 | MACD | -5.76 | Volume | 12,51,402 | Avg Vol 1Wk | 4,43,499 |
| Low price | 376 ₹ | High price | 635 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.03 |
| 52w Index | 14.3 % | Qtr Profit Var | -12.3 % | EPS | 19.3 ₹ | Industry PE | 40.5 |
📊 EMAMILTD shows strong fundamentals but faces short-term challenges. ROCE (29.8%) and ROE (28.3%) are excellent, debt-to-equity is very low (0.03), and dividend yield of 2.42% adds shareholder value. EPS of 19.3 ₹ supports profitability, and P/E ratio (21.2) is well below industry average (40.5), suggesting undervaluation. However, quarterly profit variation (-12.3%) and declining PAT (166 Cr vs 339 Cr) raise concerns. Technicals show RSI at 56 (neutral), MACD at -5.76 (bearish), and price trading below 200 DMA (479 ₹), indicating weakness despite strong fundamentals.
💡 Optimal Entry Price: Around 400–415 ₹ (near current support).
📈 Exit Strategy: If already holding, consider exiting near 440–460 ₹ (short-term resistance) or partial exit if momentum fails to recover.
Positive
- 📌 [Strong ROCE](ca://s?q=EMAMILTD_ROCE): ROCE of 29.8% reflects efficient capital use.
- 📌 [Healthy ROE](ca://s?q=EMAMILTD_ROE): ROE of 28.3% indicates strong shareholder returns.
- 📌 [Low Debt](ca://s?q=EMAMILTD_debt_equity): Debt-to-equity ratio of 0.03 shows financial stability.
- 📌 [Attractive Dividend](ca://s?q=EMAMILTD_dividend_yield): Dividend yield of 2.42% provides consistent returns.
Limitation
- ⚠️ [Profit Decline](ca://s?q=EMAMILTD_quarterly_profit): PAT fell sharply from 339 Cr to 166 Cr.
- ⚠️ [Bearish Technicals](ca://s?q=EMAMILTD_MACD_RSI): MACD negative and RSI neutral suggest weak momentum.
- ⚠️ [FII Reduction](ca://s?q=EMAMILTD_FII_holdings): Foreign institutional investors reduced holdings by 0.46%.
Company Negative News
- ❌ [Quarterly Profit Drop](ca://s?q=EMAMILTD_profit_drop): PAT decreased significantly compared to previous quarter.
- ❌ [FII Exit](ca://s?q=EMAMILTD_FII_exit): Foreign investors reduced holdings.
Company Positive News
- ✅ [Strong EPS](ca://s?q=EMAMILTD_EPS): EPS of 19.3 ₹ highlights profitability.
- ✅ [Dividend Yield](ca://s?q=EMAMILTD_dividend_yield): Yield of 2.42% provides shareholder returns.
- ✅ [Market Cap Strength](ca://s?q=EMAMILTD_market_cap): Market cap of 18,032 Cr indicates industry relevance.
Industry
- 🏭 [Industry PE](ca://s?q=FMCG_industry_PE): Industry average P/E is 40.5, much higher than EMAMILTD’s valuation.
- 🏭 [Sector Outlook](ca://s?q=FMCG_sector_outlook): FMCG sector benefits from steady demand and brand loyalty.
Conclusion
📉 EMAMILTD is a moderately good candidate for swing trading. Fundamentals are strong and valuation is attractive, but technical weakness and profit decline limit upside. Entry near 400–415 ₹ offers a cautious setup, with exit targets around 440–460 ₹. Risk remains due to declining earnings and bearish momentum, but dividend yield and strong ROE/ROCE provide stability for short-term trades.