ETERNAL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | ETERNAL | Market Cap | 2,55,012 Cr. | Current Price | 264 ₹ | High / Low | 368 ₹ |
| Stock P/E | 96.0 | Book Value | 38.4 ₹ | Dividend Yield | 0.00 % | ROCE | 8.36 % |
| ROE | 7.46 % | Face Value | 1.00 ₹ | DMA 50 | 250 ₹ | DMA 200 | 264 ₹ |
| Chg in FII Hold | -3.63 % | Chg in DII Hold | 3.27 % | PAT Qtr | 705 Cr. | PAT Prev Qtr | 657 Cr. |
| RSI | 62.1 | MACD | 2.51 | Volume | 3,00,53,903 | Avg Vol 1Wk | 3,00,76,849 |
| Low price | 213 ₹ | High price | 368 ₹ | PEG Ratio | 0.30 | Debt to equity | 0.01 |
| 52w Index | 33.1 % | Qtr Profit Var | 21.1 % | EPS | 2.75 ₹ | Industry PE | 49.7 |
📊 ETERNAL shows weak fundamentals and high valuation risk for swing trading. The P/E ratio (96.0) is nearly double the industry average (49.7), suggesting overvaluation. ROCE (8.36%) and ROE (7.46%) are low, while EPS of 2.75 ₹ is modest relative to market cap. Debt-to-equity is negligible (0.01), which is positive. RSI at 62.1 indicates neutral to slightly overbought levels, and MACD at 2.51 shows mild bullishness. The stock trades around its 200 DMA (264 ₹), suggesting consolidation. PAT improved (705 Cr vs 657 Cr), but FII holdings decreased (-3.63%), offset by DII support (+3.27%).
💡 Optimal Entry Price: Around 250–255 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider exiting near 265–270 ₹ (short-term resistance) or trail stop-loss if momentum weakens.
Positive
- 📌 [Low Debt](ca://s?q=ETERNAL_debt_equity): Debt-to-equity ratio of 0.01 shows financial stability.
- 📌 [Quarterly Profit Growth](ca://s?q=ETERNAL_quarterly_profit_growth): PAT increased from 657 Cr to 705 Cr (+21.1%).
- 📌 [DII Support](ca://s?q=ETERNAL_DII_holdings): Domestic institutional investors increased holdings by 3.27%.
Limitation
- ⚠️ [High Valuation](ca://s?q=ETERNAL_high_PE): P/E ratio of 96.0 is far above industry average (49.7).
- ⚠️ [Weak Profitability](ca://s?q=ETERNAL_low_ROCE_ROE): ROCE at 8.36% and ROE at 7.46% are poor.
- ⚠️ [Low EPS](ca://s?q=ETERNAL_EPS): EPS of 2.75 ₹ is weak relative to market cap.
Company Negative News
- ❌ [FII Exit](ca://s?q=ETERNAL_FII_exit): Foreign investors reduced holdings by 3.63%.
- ❌ [High Valuation Risk](ca://s?q=ETERNAL_overvaluation): Elevated P/E compared to peers raises caution.
Company Positive News
- ✅ [Profit Growth](ca://s?q=ETERNAL_profit_growth): PAT rose by 21.1% quarter-on-quarter.
- ✅ [Market Cap Strength](ca://s?q=ETERNAL_market_cap): Market cap of 2,55,012 Cr indicates industry leadership.
Industry
- 🏭 [Industry PE](ca://s?q=Tech_industry_PE): Industry average P/E is 49.7, much lower than ETERNAL’s valuation.
- 🏭 [Sector Outlook](ca://s?q=Tech_sector_outlook): Technology sector benefits from digital growth, but valuations remain sensitive to earnings performance.
Conclusion
📉 ETERNAL is a weak candidate for swing trading due to high valuation and poor profitability metrics. Entry near 250–255 ₹ may offer a cautious setup, but upside is limited to 265–270 ₹. Risks include overvaluation and FII reduction, making this stock suitable only for short-term traders with strict stop-loss discipline.