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ERIS - Swing Trade Analysis with AI Signals

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Rating: 2.6

Last Updated Time : 20 Jun 26, 11:26 pm

Swing Trade Rating: 2.6

Stock Code ERIS Market Cap 20,071 Cr. Current Price 1,448 ₹ High / Low 1,888 ₹
Stock P/E 79.0 Book Value 231 ₹ Dividend Yield 0.51 % ROCE 11.1 %
ROE 8.89 % Face Value 1.00 ₹ DMA 50 1,379 ₹ DMA 200 1,436 ₹
Chg in FII Hold -0.46 % Chg in DII Hold 0.04 % PAT Qtr -8.60 Cr. PAT Prev Qtr 17.0 Cr.
RSI 61.8 MACD 13.7 Volume 1,09,041 Avg Vol 1Wk 58,287
Low price 1,200 ₹ High price 1,888 ₹ PEG Ratio -5.84 Debt to equity 0.66
52w Index 36.1 % Qtr Profit Var -128 % EPS 17.6 ₹ Industry PE 32.5

📊 ERIS shows weak fundamentals and high risk for swing trading. The P/E ratio (79.0) is far above industry average (32.5), suggesting overvaluation. ROCE (11.1%) and ROE (8.89%) are low, and debt-to-equity is relatively high at 0.66. PAT turned negative (-8.6 Cr vs 17 Cr), with quarterly profit variation at -128%, indicating severe earnings weakness. RSI at 61.8 is neutral to slightly overbought, MACD at 13.7 shows mild bullishness, and volume is higher than average, suggesting short-term activity. Despite EPS of 17.6 ₹ and dividend yield of 0.51%, fundamentals remain poor.

💡 Optimal Entry Price: Around 1,350–1,380 ₹ (near 50 DMA support).

📈 Exit Strategy: If already holding, consider exiting near 1,500–1,550 ₹ (short-term resistance) or cut losses if earnings weakness persists.

Positive

  • 📌 [EPS Support](ca://s?q=ERIS_EPS): EPS of 17.6 ₹ provides some valuation backing.
  • 📌 [Dividend Yield](ca://s?q=ERIS_dividend_yield): Yield of 0.51% offers shareholder returns.
  • 📌 [Volume Strength](ca://s?q=ERIS_trading_volume): Current trading volume is higher than 1-week average, showing short-term interest.

Limitation

  • ⚠️ [High Valuation](ca://s?q=ERIS_high_PE): P/E ratio of 79.0 is far above industry average (32.5).
  • ⚠️ [Weak Profitability](ca://s?q=ERIS_low_ROCE_ROE): ROCE at 11.1% and ROE at 8.89% are poor.
  • ⚠️ [High Debt](ca://s?q=ERIS_debt_equity): Debt-to-equity ratio of 0.66 raises financial risk.

Company Negative News

  • [Profit Turned Negative](ca://s?q=ERIS_profit_loss): PAT dropped to -8.6 Cr from 17 Cr.
  • [Quarterly Profit Collapse](ca://s?q=ERIS_quarterly_profit_variation): Profit variation at -128% shows severe weakness.
  • [FII Exit](ca://s?q=ERIS_FII_exit): Foreign investors reduced holdings by 0.46%.

Company Positive News

  • [Dividend Yield](ca://s?q=ERIS_dividend_yield): Yield of 0.51% provides shareholder returns.
  • [Market Cap Strength](ca://s?q=ERIS_market_cap): Market cap of 20,071 Cr indicates industry relevance.

Industry

  • 🏭 [Industry PE](ca://s?q=Pharma_industry_PE): Industry average P/E is 32.5, much lower than ERIS’s valuation.
  • 🏭 [Sector Outlook](ca://s?q=Pharma_sector_outlook): Pharma sector benefits from steady demand and healthcare expansion, but company-specific weakness limits upside.

Conclusion

📉 ERIS is a weak candidate for swing trading. Fundamentals are poor, profitability has collapsed, and valuation is stretched. Entry near 1,350–1,380 ₹ may offer a cautious setup, but upside is limited to 1,500–1,550 ₹. Risks include negative PAT, high debt, and overvaluation, making this stock suitable only for high-risk traders with strict stop-loss discipline.

Technical Analysis
Fundamental Analysis

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