ETERNAL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | ETERNAL | Market Cap | 2,20,688 Cr. | Current Price | 229 ₹ | High / Low | 368 ₹ |
| Stock P/E | 87.2 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 260 ₹ | DMA 200 | 277 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 38.6 | MACD | -12.0 | Volume | 7,47,50,473 | Avg Vol 1Wk | 7,70,55,310 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 1.73 | Debt to equity | 0.01 |
| 52w Index | 21.9 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 38.4 |
📊 ETERNAL shows weak fundamentals despite its large market cap. The P/E of 87.2 is far above the industry average (38.4), while ROCE (7.34%) and ROE (6.55%) are low, indicating poor efficiency. Technical indicators (RSI 38.6, MACD -12.0) suggest bearish momentum, and the stock is trading below both DMA 50 (260 ₹) and DMA 200 (277 ₹). Although quarterly PAT is stable (657 Cr. vs 691 Cr.), the valuation looks stretched. This makes ETERNAL a weak candidate for swing trading, suitable only for cautious short-term plays near strong support.
💡 Optimal Entry Price: Around 220–230 ₹ (close to support zone near 190 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 255–260 ₹ (DMA resistance) unless fundamentals improve.
Positive
- EPS of 2.62 ₹ provides some valuation support.
- DII holdings increased (+2.57%), showing domestic institutional confidence.
- Debt-to-equity ratio of 0.01 indicates strong financial stability.
- Quarterly PAT remains steady despite market weakness.
Limitation
- High P/E (87.2) compared to industry average (38.4), indicating overvaluation.
- Weak ROCE (7.34%) and ROE (6.55%) show poor efficiency.
- Dividend yield is 0%, offering no income support.
- Stock trading below DMA 50 and DMA 200, reflecting technical weakness.
Company Negative News
- FII holdings decreased significantly (-2.80%), showing reduced foreign investor confidence.
- Stock trading near 52-week low (190 ₹), reflecting bearish sentiment.
Company Positive News
- DII holdings increased (+2.57%), showing domestic support.
- Quarterly PAT stable (657 Cr. vs 691 Cr.), showing resilience.
Industry
- Industry P/E is 38.4, far below ETERNAL’s 87.2, highlighting premium valuation.
- Sector outlook remains steady, but company-specific fundamentals are weak.
Conclusion
⚠️ ETERNAL is a weak swing trade candidate due to poor fundamentals, high valuation, and bearish technicals. Entry near 220–230 ₹ may offer limited upside, but risks outweigh rewards. Exit targets should be set around 255–260 ₹, with a strict stop-loss near 215 ₹ to manage downside risk.