ETERNAL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | ETERNAL | Market Cap | 2,84,114 Cr. | Current Price | 294 ₹ | High / Low | 368 ₹ |
| Stock P/E | 112 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 286 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 58.2 | MACD | -2.30 | Volume | 6,68,70,199 | Avg Vol 1Wk | 5,41,12,396 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 2.23 | Debt to equity | 0.01 |
| 52w Index | 58.5 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 46.9 |
📊 ETERNAL shows moderate potential for swing trading. The fundamentals are weak with low ROCE (7.34%) and ROE (6.55%), and an extremely high P/E (112 vs industry 46.9), suggesting overvaluation. Dividend yield is 0%, offering no passive returns. However, the company has strong trading volume and recent quarterly profit growth (+33%), supported by rising DII holdings. Technically, the stock is trading slightly above both 50 DMA (286 ₹) and 200 DMA (285 ₹), with RSI at 58.2 indicating bullish momentum, though MACD (-2.30) shows mild weakness. Overall, the stock offers cautious swing trade potential.
💡 Optimal Entry Price: Around 285–295 ₹ (near DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 320–330 ₹ (resistance zone) unless momentum strengthens further.
✅ Positive
- Quarterly PAT strong at 657 Cr. vs 691 Cr. previously, showing resilience.
- EPS of 2.62 ₹ indicates profitability.
- DII holdings increased (+2.57%), showing domestic institutional support.
- Debt-to-equity ratio of 0.01 shows virtually debt-free status.
- Strong trading volume above weekly average, indicating active interest.
⚠️ Limitation
- Extremely high P/E ratio (112) compared to industry PE (46.9).
- Weak return ratios: ROCE 7.34% and ROE 6.55%.
- Dividend yield at 0%, offering no passive income.
- PEG ratio of 2.23 suggests overvaluation relative to growth.
📉 Company Negative News
- FII holdings decreased (-2.80%), showing reduced foreign investor confidence.
- Sequential PAT decline from 691 Cr. to 657 Cr.
📈 Company Positive News
- Quarterly profit variation +33% YoY, showing strong growth.
- DII holdings increased significantly, reflecting domestic support.
- Stock trading above both 50 DMA and 200 DMA, showing technical strength.
🏭 Industry
- Industry PE at 46.9, much lower than company’s PE, suggesting overvaluation.
- Sector outlook remains positive, supporting medium-term growth potential.
🔎 Conclusion
ETERNAL is technically stable but fundamentally overvalued with weak return ratios. It offers a cautious swing trade opportunity with entry around 285–295 ₹ and exit near 320–330 ₹. Traders should remain cautious due to high valuation and declining foreign investor confidence, but strong volume and domestic support provide short-term trading potential.