GILLETTE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.2

📈 Analysis: GILLETTE shows strong fundamentals but weak technical momentum, making it a cautious swing trade candidate. The current price of ₹8,727 is well below both the 50 DMA (₹9,587) and 200 DMA (₹9,455), indicating a bearish trend. RSI at 24.3 and MACD at -227 suggest oversold conditions, but no clear reversal yet. ROCE (56.1%) and ROE (41.6%) are excellent, and the company has zero debt. However, the high PEG ratio (4.69) and premium valuation (P/E of 49.5) raise concerns. Institutional activity is mixed, with FII slightly increasing and DII declining.

🎯 Optimal Entry Price: ₹8,600–₹8,700 (near current support and oversold RSI)

🚪 Exit Strategy (if holding): Consider exiting near ₹9,400–₹9,600 (DMA resistance zone) or if RSI crosses 55 with MACD turning positive.

✅ Positive

• 📊 ROCE (56.1%) and ROE (41.6%) — excellent capital efficiency
• 💸 Zero debt — strong financial health
• 📈 EPS of ₹176 — robust earnings base
• 📈 FII holding increased (+0.19%) — foreign investor confidence
• 💰 Dividend yield of 1.28% — moderate income support

⚠️ Limitation

• 📉 RSI at 24.3 and MACD at -227 — oversold and bearish momentum
• 📉 Price below both 50 and 200 DMA — weak trend
• 📉 PEG ratio of 4.69 — expensive growth valuation
• 📉 DII holding decreased (-0.45%) — domestic investor caution

📰 Company Negative News

• No major public negative news, but technical weakness and valuation concerns are notable

🌟 Company Positive News

• Stable quarterly PAT and strong return ratios reflect operational consistency

🏭 Industry

• Industry P/E is 51.6 — GILLETTE trades slightly below, offering mild valuation comfort
• FMCG sector remains resilient with steady demand and brand loyalty

🧾 Conclusion

GILLETTE is a fundamentally strong but technically weak swing trade candidate. Entry near support may offer a tactical opportunity if momentum improves. Exit near DMA resistance or on RSI/MACD confirmation is advisable.

I can also chart GILLETTE’s RSI and MACD trends to help you time your entry more precisely.