ERIS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | ERIS | Market Cap | 19,758 Cr. | Current Price | 1,427 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 70.1 | Book Value | 203 ₹ | Dividend Yield | 0.51 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,489 ₹ | DMA 200 | 1,536 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.95 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 100.0 Cr. |
| RSI | 46.9 | MACD | -34.9 | Volume | 26,911 | Avg Vol 1Wk | 40,948 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.62 | Debt to equity | 0.79 |
| 52w Index | 40.6 % | Qtr Profit Var | 432 % | EPS | 20.7 ₹ | Industry PE | 29.1 |
📊 ERIS shows weak potential for swing trading despite a sharp quarterly profit increase. The fundamentals are concerning with low ROCE (6.86%) and ROE (3.02%), high debt-to-equity (0.79), and an expensive valuation (P/E 70.1 vs industry 29.1). Technically, the stock is trading below both 50 DMA (1,489 ₹) and 200 DMA (1,536 ₹), with RSI at 46.9 and MACD (-34.9) signaling bearish momentum. Low trading volume compared to average further limits short-term upside. While the PAT surge is encouraging, overall risk remains high.
💡 Optimal Entry Price: Around 1,350–1,380 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 1,480–1,500 ₹ (resistance zone around DMA levels) unless momentum improves significantly.
✅ Positive
- Quarterly PAT surged from 100 Cr. to 150 Cr. (+432%).
- EPS of 20.7 ₹ shows profitability despite weak ratios.
- DII holdings increased (+0.95%), showing domestic institutional support.
- Dividend yield of 0.51% provides shareholder returns.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- RSI at 46.9 and MACD negative (-34.9), indicating weak momentum.
- High debt-to-equity ratio (0.79) compared to peers.
- PEG ratio negative (-1.62), suggesting valuation concerns.
📉 Company Negative News
- FII holdings decreased (-0.36%), showing reduced foreign investor confidence.
- Weak return ratios: ROCE 6.86% and ROE 3.02%.
📈 Company Positive News
- Strong quarterly profit growth (+432%).
- EPS of 20.7 ₹ highlights profitability.
- DII holdings increased, showing domestic support.
🏭 Industry
- Industry PE at 29.1, much lower than company’s PE (70.1), suggesting overvaluation.
- Pharmaceutical sector outlook remains positive, but company-specific fundamentals are weak.
🔎 Conclusion
ERIS is fundamentally weak and technically bearish despite recent profit growth. It offers limited swing trade potential with entry around 1,350–1,380 ₹ and cautious exit near 1,480–1,500 ₹. Traders should remain cautious due to high valuation, debt levels, and weak return ratios.