GAIL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | GAIL | Market Cap | 1,08,753 Cr. | Current Price | 165 ₹ | High / Low | 203 ₹ |
| Stock P/E | 14.0 | Book Value | 112 ₹ | Dividend Yield | 4.53 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 169 ₹ | DMA 200 | 177 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | -0.12 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 49.0 | MACD | -1.65 | Volume | 1,88,45,292 | Avg Vol 1Wk | 1,98,29,655 |
| Low price | 151 ₹ | High price | 203 ₹ | PEG Ratio | -4.85 | Debt to equity | 0.26 |
| 52w Index | 28.4 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 15.8 |
📊 GAIL shows moderate potential for swing trading. The fundamentals are decent with ROCE (15.3%) and ROE (14.1%), supported by EPS (11.8 ₹). The P/E ratio (14.0) is slightly below the industry average (15.8), suggesting fair valuation. Dividend yield is attractive at 4.53%, adding shareholder value. Technically, the stock is trading below both 50 DMA (169 ₹) and 200 DMA (177 ₹), indicating short-term weakness. RSI at 49.0 is neutral, while MACD (-1.65) signals mild bearishness. Quarterly PAT declined (-19.5%), which weighs on sentiment, though FII holdings increased slightly. Overall, the stock offers cautious swing trade potential.
💡 Optimal Entry Price: Around 160–165 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 175–180 ₹ (resistance zone around 200 DMA) unless momentum improves.
✅ Positive
- Attractive dividend yield of 4.53%.
- ROCE (15.3%) and ROE (14.1%) reflect decent efficiency.
- P/E ratio (14.0) slightly below industry PE (15.8), suggesting fair valuation.
- FII holdings increased (+0.35%), showing foreign investor confidence.
- Strong liquidity with high trading volumes.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- MACD negative (-1.65), signaling short-term weakness.
- PEG ratio (-4.85) suggests valuation concerns.
- Quarterly PAT decline (-19.5%) weakens sentiment.
📉 Company Negative News
- Quarterly PAT dropped from 2,217 Cr. to 1,603 Cr.
- DII holdings decreased (-0.12%), showing reduced domestic support.
📈 Company Positive News
- Dividend yield of 4.53% provides strong shareholder returns.
- FII holdings increased, reflecting foreign investor confidence.
- EPS of 11.8 ₹ highlights profitability.
🏭 Industry
- Industry PE at 15.8, close to company’s PE (14.0), suggesting fair valuation.
- Energy and gas sector outlook remains stable with steady demand.
🔎 Conclusion
GAIL is fundamentally stable with attractive dividend yield but technically weak in the short term. It offers a cautious swing trade opportunity with entry around 160–165 ₹ and exit near 175–180 ₹. Traders should monitor momentum indicators closely before aggressive entry, as profit decline and technical weakness pose risks.