ERIS - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.2

📈 Analysis: ERIS shows a mixed profile for swing trading. While the recent quarterly profit jump (487% QoQ) is impressive, the stock is trading below its 50 DMA (₹1,636) and just above the 200 DMA (₹1,554), indicating indecision. RSI at 45.4 and a negative MACD (-9.26) reflect weak momentum. The high P/E of 135 and negative PEG ratio suggest overvaluation without clear growth justification. Institutional activity is also mixed, with FIIs reducing and DIIs increasing their stake.

🎯 Optimal Entry Price: ₹1,550–₹1,570 (near 200 DMA support)

🚪 Exit Strategy (if holding): Consider exiting near ₹1,680–₹1,700 (resistance zone) or if RSI crosses 60 with volume confirmation.

✅ Positive

• 📈 Massive QoQ PAT growth (487%) — strong earnings rebound
• 📊 Trading near 200 DMA — potential support zone
• 📈 DII holding increased (+1.18%) — domestic confidence

⚠️ Limitation

• 📉 Weak ROCE (6.86%) and ROE (3.02%) — inefficient capital use
• 📉 High P/E (135) and negative PEG (-3.10) — overvalued with unclear growth
• 📉 RSI below 50 and negative MACD — bearish technicals
• 📉 Low trading volume compared to 1-week average

📰 Company Negative News

• No major negative news reported, but weak return ratios and high valuation raise caution

🌟 Company Positive News

• Strong quarterly profit recovery signals potential turnaround

🏭 Industry

• Industry P/E is 33.1 — ERIS trades at a significant premium
• Pharmaceutical sector remains defensive but sensitive to regulatory and pricing pressures

🧾 Conclusion

ERIS is a cautious swing trade candidate. While the earnings rebound is encouraging, weak technicals and valuation concerns limit upside. Entry near 200 DMA offers a low-risk setup, but confirmation via RSI and volume is essential. Exit near resistance or on signs of reversal.

I can also compare ERIS with peers like Ajanta Pharma or Alkem Labs to assess relative swing potential.