GILLETTE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📊 GILLETTE shows moderate potential for swing trading. The fundamentals are strong with high ROCE (56.1%) and ROE (41.6%), zero debt, and consistent profitability. However, valuation is stretched (P/E 45.3 vs industry 49.7, PEG 4.29), and technical indicators suggest bearish momentum (RSI 35.9, MACD -190). The stock is trading below both its 50 DMA (8,690 ₹) and 200 DMA (9,164 ₹), showing weakness. Optimal entry would be near 7,700–7,800 ₹. If already holding, consider exiting around 8,600–8,800 ₹ if momentum strengthens.

✅ Positive

• 📈 Strong ROCE (56.1%) and ROE (41.6%) highlight excellent capital efficiency.
• 💰 Debt-free balance sheet ensures financial stability.
• 📊 EPS of 176 ₹ supports earnings visibility.
• 📉 Dividend yield of 1.40% adds shareholder value.
• 📊 Quarterly PAT stable (144 Cr. vs 146 Cr.) with modest growth (+8%).

⚠️ Limitation

• 📉 RSI at 35.9 indicates weak momentum and oversold conditions.
• 📊 Negative MACD (-190) shows bearish technical trend.
• 📉 Current price below both 50 DMA and 200 DMA, showing technical weakness.
• 📉 Decline in DII holdings (-0.45%) highlights reduced domestic investor interest.
• 📊 PEG ratio (4.29) suggests overvaluation relative to growth.
• 📉 Low trading volume compared to average, indicating reduced participation.

🚨 Company Negative News

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

🌟 Company Positive News

Strong efficiency ratios, debt-free status, and modest profit growth highlight resilience despite valuation concerns.

🏭 Industry

The FMCG and personal care industry trades at an average P/E of 49.7. GILLETTE trades slightly lower at 45.3, reflecting fair valuation but weak technical momentum.

📌 Conclusion

GILLETTE is a moderately strong candidate for swing trading with excellent fundamentals but weak technicals. Entry near 7,700–7,800 ₹ is optimal. Exit strategy should target 8,600–8,800 ₹ if momentum improves. Caution is advised due to bearish indicators and declining domestic investor interest.

I can also prepare a peer comparison with other FMCG and personal care companies trading at similar valuations to highlight whether GILLETTE offers stronger swing trade potential than its competitors.