ETERNAL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | ETERNAL | Market Cap | 2,43,319 Cr. | Current Price | 252 ₹ | High / Low | 368 ₹ |
| Stock P/E | 91.6 | Book Value | 38.4 ₹ | Dividend Yield | 0.00 % | ROCE | 8.36 % |
| ROE | 7.46 % | Face Value | 1.00 ₹ | DMA 50 | 251 ₹ | DMA 200 | 270 ₹ |
| Chg in FII Hold | -3.63 % | Chg in DII Hold | 3.27 % | PAT Qtr | 705 Cr. | PAT Prev Qtr | 657 Cr. |
| RSI | 52.9 | MACD | 3.06 | Volume | 4,61,92,864 | Avg Vol 1Wk | 9,79,18,544 |
| Low price | 213 ₹ | High price | 368 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.01 |
| 52w Index | 25.2 % | Qtr Profit Var | 21.1 % | EPS | 2.75 ₹ | Industry PE | 37.8 |
Analysis: ETERNAL shows moderate potential for swing trading. RSI at 52.9 is slightly bullish, and MACD is positive (3.06), indicating some upward momentum. Current price (252 ₹) is near the 50 DMA (251 ₹) but below the 200 DMA (270 ₹), suggesting resistance overhead. Valuation is stretched with a high P/E of 91.6 compared to industry average (37.8), though PEG ratio of 0.29 indicates growth potential. Quarterly PAT improved (705 Cr vs 657 Cr), showing earnings momentum. However, FII holdings dropped significantly (-3.63%), raising caution despite DII support (+3.27%).
Optimal Entry: Entry is favorable near 240–245 ₹ support zone.
Exit Strategy: If already holding, consider exiting near 265–270 ₹ resistance unless momentum strengthens with higher volumes.
✅ Positive
- Large market cap of 2,43,319 Cr provides strong stability.
- Quarterly PAT growth of 21.1% shows improving profitability.
- ROE (7.46%) and ROCE (8.36%) are modest but positive.
- Debt-to-equity ratio of 0.01 reflects very low leverage.
- PEG ratio of 0.29 suggests potential growth despite high P/E.
⚠️ Limitation
- High P/E ratio (91.6) compared to industry average (37.8).
- Stock trades below 200 DMA (270 ₹), showing resistance.
- EPS at 2.75 ₹ is relatively low given valuation.
- Trading volume is below weekly average, showing reduced activity.
📉 Company Negative News
- FII holdings decreased sharply (-3.63%), signaling reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+3.27%), showing domestic investor support.
- PAT improved (705 Cr vs 657 Cr), reflecting earnings growth.
🏭 Industry
- Industry P/E at 37.8 is much lower than ETERNAL, highlighting overvaluation.
- Sector growth remains steady, but valuations are stretched compared to peers.
🔎 Conclusion
ETERNAL is a moderately good candidate for swing trading with short-term bullish signals. Entry near 240–245 ₹ offers a safer risk-reward setup. Exit near 265–270 ₹ resistance is advisable unless momentum strengthens with higher volumes. Fundamentals show growth, but high valuation and reduced FII confidence warrant caution.