ERIS - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.4
| Stock Code | ERIS | Market Cap | 21,478 Cr. | Current Price | 1,577 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 76.2 | Book Value | 203 ₹ | Dividend Yield | 0.47 % | ROCE | 6.86 % |
| ROE | 3.02 % | Face Value | 1.00 ₹ | DMA 50 | 1,603 ₹ | DMA 200 | 1,564 ₹ |
| Chg in FII Hold | -1.18 % | Chg in DII Hold | 1.18 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 100.0 Cr. |
| RSI | 44.5 | MACD | -10.2 | Volume | 18,565 | Avg Vol 1Wk | 49,024 |
| Low price | 1,097 ₹ | High price | 1,910 ₹ | PEG Ratio | -1.76 | Debt to equity | 0.79 |
| 52w Index | 59.0 % | Qtr Profit Var | 432 % | EPS | 20.7 ₹ | Industry PE | 30.6 |
📊 ERIS shows limited potential for swing trading. While the company has posted strong quarterly profit growth (432% variation), its fundamentals are weak with low ROCE (6.86%) and ROE (3.02%). The high P/E ratio (76.2 vs industry 30.6) indicates overvaluation. Technical indicators (RSI 44.5, MACD negative) suggest weak momentum. Optimal entry would be near 1,520–1,540 ₹. If already holding, consider exiting around 1,700–1,750 ₹ if momentum improves.
✅ Positive
- 📈 Strong quarterly PAT growth (150 Cr. vs 100 Cr.).
- 💰 Dividend yield of 0.47% provides some investor return.
- 📊 EPS at 20.7 ₹ shows earnings consistency.
- 📉 DII holdings increased (+1.18%), showing domestic investor confidence.
⚠️ Limitation
- 📉 Very high P/E ratio (76.2) compared to industry average (30.6).
- 📊 Weak ROCE (6.86%) and ROE (3.02%) indicate poor capital efficiency.
- 📉 Debt-to-equity ratio at 0.79 is relatively high.
- 📉 RSI at 44.5 and MACD (-10.2) show weak technical momentum.
- 📉 Current trading volume significantly below 1-week average.
🚨 Company Negative News
No major negative news reported, but weak fundamentals and reduced FII holdings (-1.18%) raise caution.
🌟 Company Positive News
Strong quarterly profit growth and rising DII interest highlight resilience despite valuation concerns.
🏭 Industry
The pharmaceutical industry trades at an average P/E of 30.6. ERIS trades at a steep premium, reflecting growth expectations but also significant overvaluation risk.
📌 Conclusion
ERIS is a risky candidate for swing trading due to weak fundamentals and high valuation. Entry near 1,520–1,540 ₹ is optimal for risk-tolerant traders. Exit strategy should target 1,700–1,750 ₹ if momentum strengthens. Caution is advised given overvaluation and weak technical indicators.
I can also prepare a comparison with other pharma stocks trading at similar valuations so you can see if ERIS offers better or worse swing trade potential. Would you like me to set that up?
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