FORTIS - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.9

📊 FORTIS shows weak potential for swing trading at present. The fundamentals are stretched with an extremely high P/E (364 vs industry 51.8), very low EPS (2.31 ₹), and poor ROE (1.41%). Technical indicators (RSI 33.5, MACD -27.2) suggest bearish momentum. The stock is trading below its 50 DMA (930 ₹) but slightly above its 200 DMA (850 ₹), indicating short-term weakness. Optimal entry would be near 860–870 ₹. If already holding, consider exiting around 950–970 ₹ if momentum improves.

✅ Positive

• 📈 Quarterly PAT growth (105 Cr. vs 38 Cr., +9.77%).
• 💰 Large market cap (67,240 Cr.) provides liquidity and stability.
• 🌍 Increase in FII holdings (+0.72%) shows foreign investor confidence.
• 📉 Debt-to-equity ratio of 0.22 is manageable.

⚠️ Limitation

• 📉 Extremely high P/E ratio (364) compared to industry average (51.8).
• 📊 Weak ROCE (3.27%) and ROE (1.41%) indicate poor capital efficiency.
• 📉 RSI at 33.5 and MACD (-27.2) show bearish momentum.
• 📉 EPS of 2.31 ₹ is very low relative to valuation.
• 📉 Current price below 50 DMA, showing technical weakness.
• 📉 Decline in DII holdings (-0.65%) highlights reduced domestic investor interest.

🚨 Company Negative News

No major negative news reported, but weak fundamentals and declining domestic investor interest raise caution.

🌟 Company Positive News

Quarterly profit growth and rising FII interest highlight resilience despite valuation concerns.

🏭 Industry

The healthcare and hospital industry trades at an average P/E of 51.8. FORTIS trades at a steep premium (364), reflecting growth expectations but also significant overvaluation risk.

📌 Conclusion

FORTIS is a risky candidate for swing trading due to weak fundamentals, extreme valuation, and bearish technicals. Entry near 860–870 ₹ is optimal for risk-tolerant traders. Exit strategy should target 950–970 ₹ if momentum strengthens. Caution is strongly advised given overvaluation and poor efficiency ratios.

I can also prepare a peer comparison with other hospital and healthcare stocks to highlight whether FORTIS offers stronger or weaker swing trade potential than its competitors.