FSL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | FSL | Market Cap | 15,557 Cr. | Current Price | 220 ₹ | High / Low | 404 ₹ |
| Stock P/E | 33.2 | Book Value | 37.2 ₹ | Dividend Yield | 2.50 % | ROCE | 16.9 % |
| ROE | 15.3 % | Face Value | 10.0 ₹ | DMA 50 | 262 ₹ | DMA 200 | 314 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.56 % | PAT Qtr | 144 Cr. | PAT Prev Qtr | 98.0 Cr. |
| RSI | 38.2 | MACD | -14.3 | Volume | 8,26,688 | Avg Vol 1Wk | 14,75,587 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | -85.0 | Debt to equity | 0.32 |
| 52w Index | 9.66 % | Qtr Profit Var | 39.8 % | EPS | 5.44 ₹ | Industry PE | 21.3 |
📊 FSL shows moderate fundamentals with ROCE (16.9%) and ROE (15.3%), supported by a manageable debt-to-equity ratio (0.32). The P/E of 33.2 is higher than the industry average (21.3), suggesting premium valuation. EPS of 5.44 ₹ and strong quarterly PAT growth (144 Cr. vs 98 Cr.) highlight earnings resilience. Technical indicators (RSI 38.2, MACD -14.3) suggest bearish momentum, and the stock is trading below DMA 50 (262 ₹) and DMA 200 (314 ₹). This makes FSL a fair candidate for swing trading with cautious positioning.
💡 Optimal Entry Price: Around 215–225 ₹ (close to support zone near 201 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 260–265 ₹ (DMA 50 resistance) unless momentum strengthens further.
Positive
- Strong ROCE (16.9%) and ROE (15.3%) indicate efficient capital utilization.
- Quarterly PAT growth (+39.8%) highlights earnings resilience.
- DII holdings increased (+0.56%), showing domestic institutional support.
- Dividend yield of 2.50% provides attractive income support.
Limitation
- Current price (220 ₹) is below DMA 50 and DMA 200, reflecting technical weakness.
- RSI and MACD indicate bearish momentum.
- P/E of 33.2 is higher than industry average, showing premium valuation.
- PEG ratio (-85.0) suggests growth concerns.
Company Negative News
- FII holdings decreased slightly (-0.05%), showing reduced foreign investor confidence.
- Stock trading below key moving averages, reflecting short-term weakness.
- Volume lower than average (8,26,688 vs 14,75,587), showing reduced trading activity.
Company Positive News
- Quarterly PAT improved significantly (144 Cr. vs 98 Cr.).
- DII holdings increased (+0.56%), showing domestic support.
- Dividend yield of 2.50% adds investor appeal.
Industry
- Industry P/E is 21.3, while company P/E is 33.2, showing premium valuation.
- IT services and outsourcing sector remains resilient, supported by global demand.
Conclusion
✅ FSL is a moderately good swing trade candidate. Strong earnings growth and dividend yield support potential upside, though weak technicals and premium valuation require caution. Entry near 215–225 ₹ offers favorable risk-reward, with exit targets around 260–265 ₹. A strict stop-loss near 210 ₹ is advisable to manage downside risk.