ETERNAL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.8

Here’s why ETERNAL scores low for swing trading right now, despite its flashy price action

🚦 Fundamental & Technical Snapshot

Valuation

P/E: 990 vs industry 38.5 → Extreme overvaluation

PEG: 31.4 → Suggests disproportionate pricing vs growth

EPS: ₹0.33 → Poor earnings base

Book Value: ₹31.4 → Price-to-book multiple >9x

Profitability

ROCE: 2.66% & ROE: 1.71% → Weak return metrics

Quarterly Profit Shrinkage: -90.1% → Sharp drop in performance

Debt

D/E: 0.07 → Low, which is positive

📈 Momentum Metrics

Current Price: ₹307 near 52W high of ₹314 → Possible exhaustion

DMA 50 / DMA 200: ₹264 / ₹242 → Price trading well above both

RSI: 72.8 → Overbought, susceptible to pullback

MACD: 14.1 → Positive but may be peaking

Volume: Way below weekly average → Momentum not supported by participation

🎯 Swing Trade Setup

This stock is not ideal for swing trading currently due to poor fundamentals and overbought technicals.

The high valuation and overextended RSI indicate limited upside and high reversal risk.

✅ Suggested Entry (If Still Interested)

Buy Zone: ₹260–₹270 Closer to 50-DMA for safer risk-reward trade.

🚪 Exit Plan (If Already Holding)

Profit Booking Range: ₹312–₹316 Aim to exit near 52W high if RSI stays elevated.

Stop-Loss: ₹248 Below 200-DMA to protect against breakdown.

If you'd like, I can help scan the market for stronger swing trade candidates with better growth and technical momentum. Ready when you are.

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