ERIS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | ERIS | Market Cap | 17,786 Cr. | Current Price | 1,286 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 59.9 | Book Value | 203 ₹ | Dividend Yield | 0.57 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,395 ₹ | DMA 200 | 1,492 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 17.0 Cr. | PAT Prev Qtr | 150 Cr. |
| RSI | 36.2 | MACD | -28.5 | Volume | 73,181 | Avg Vol 1Wk | 1,07,458 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.38 | Debt to equity | 0.79 |
| 52w Index | 23.2 % | Qtr Profit Var | 853 % | EPS | 20.8 ₹ | Industry PE | 27.2 |
📊 ERIS currently shows weak fundamentals and bearish technicals. The P/E of 59.9 is far above the industry average (27.2), while ROCE (6.86%) and ROE (3.02%) are low, indicating poor efficiency. The sharp decline in quarterly PAT (17 Cr. vs 150 Cr.) raises concerns. Technical indicators (RSI 36.2, MACD -28.5) suggest oversold conditions but also weak momentum. This makes ERIS a poor candidate for swing trading, suitable only for cautious short-term plays near strong support.
💡 Optimal Entry Price: Around 1,250–1,270 ₹ (close to support zone near 1,097 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 1,380–1,400 ₹ (DMA resistance) unless fundamentals improve.
Positive
- EPS of 20.8 ₹ provides some valuation support.
- DII holdings increased (+0.95%), showing domestic institutional interest.
- Dividend yield of 0.57% offers modest income support.
Limitation
- High P/E (59.9) compared to industry average (27.2), indicating overvaluation.
- Weak ROCE (6.86%) and ROE (3.02%) show poor efficiency.
- PEG ratio (-1.38) suggests growth concerns.
- Debt-to-equity ratio of 0.79 is relatively high, adding financial risk.
Company Negative News
- Quarterly PAT dropped sharply (17 Cr. vs 150 Cr.).
- FII holdings decreased (-0.36%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, reflecting technical weakness.
Company Positive News
- DII holdings increased (+0.95%), showing domestic support.
- EPS remains positive despite profit decline.
Industry
- Industry P/E is 27.2, far below ERIS’s 59.9, highlighting premium valuation.
- Pharma sector remains resilient, but company-specific fundamentals are weak.
Conclusion
⚠️ ERIS is a weak swing trade candidate due to poor fundamentals, high valuation, and bearish technicals. Entry near 1,250–1,270 ₹ may offer limited upside, but risks outweigh rewards. Exit targets should be set around 1,380–1,400 ₹, with a strict stop-loss near 1,220 ₹ to manage downside risk.