GAIL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | GAIL | Market Cap | 94,828 Cr. | Current Price | 144 ₹ | High / Low | 203 ₹ |
| Stock P/E | 12.2 | Book Value | 112 ₹ | Dividend Yield | 5.20 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 161 ₹ | DMA 200 | 172 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | -0.12 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 34.0 | MACD | -4.96 | Volume | 1,10,96,080 | Avg Vol 1Wk | 1,16,88,466 |
| Low price | 144 ₹ | High price | 203 ₹ | PEG Ratio | -4.23 | Debt to equity | 0.26 |
| 52w Index | 0.80 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 13.8 |
📊 GAIL shows fair fundamentals with ROCE (15.3%) and ROE (14.1%), supported by a low debt-to-equity ratio (0.26). The P/E of 12.2 is below the industry average (13.8), suggesting undervaluation. EPS of 11.8 ₹ and strong dividend yield (5.20%) add investor appeal. However, quarterly PAT declined (1,603 Cr. vs 2,217 Cr.), showing earnings pressure. Technical indicators (RSI 34.0, MACD -4.96) suggest bearish momentum, and the stock is trading below DMA 50 (161 ₹) and DMA 200 (172 ₹). This makes GAIL a moderately good swing trade candidate with cautious positioning.
💡 Optimal Entry Price: Around 140–145 ₹ (close to support zone near 144 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 160–165 ₹ (DMA 50 resistance) unless momentum strengthens further.
Positive
- P/E of 12.2 is below industry average, showing undervaluation.
- Strong dividend yield of 5.20% provides attractive income support.
- ROCE (15.3%) and ROE (14.1%) indicate decent efficiency.
- FII holdings increased slightly (+0.35%), showing foreign investor confidence.
Limitation
- Current price (144 ₹) is below DMA 50 and DMA 200, reflecting technical weakness.
- RSI and MACD indicate bearish momentum.
- Quarterly PAT declined significantly, showing earnings pressure.
- PEG ratio (-4.23) suggests growth concerns.
Company Negative News
- Quarterly PAT dropped (1,603 Cr. vs 2,217 Cr.).
- DII holdings decreased (-0.12%), showing reduced domestic support.
- Stock trading near 52-week low (144 ₹), reflecting bearish sentiment.
Company Positive News
- Dividend yield of 5.20% adds strong investor appeal.
- FII holdings increased (+0.35%), showing foreign support.
- Large market cap (94,828 Cr.) provides stability in the energy sector.
Industry
- Industry P/E is 13.8, while company P/E is 12.2, showing undervaluation.
- Energy and gas sector remains resilient, supported by infrastructure demand and government policies.
Conclusion
✅ GAIL is a moderately good swing trade candidate. Strong dividend yield and fair valuation support potential upside, though weak technicals and declining quarterly PAT require caution. Entry near 140–145 ₹ offers favorable risk-reward, with exit targets around 160–165 ₹. A strict stop-loss near 138 ₹ is advisable to manage downside risk.