GODFRYPHLP - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📊 GODFRYPHLP shows strong fundamentals with high ROCE and ROE, but short-term technical indicators are weak. The stock is currently trading below its 50 DMA and close to its 200 DMA, suggesting caution for swing traders.

✅ Optimal Entry Price: Around 2,750–2,800 ₹ (near support at DMA 200)

📈 Exit Strategy: If already holding, consider exiting near 3,100–3,200 ₹ resistance zone or if RSI crosses 65.

Positive

• 💡 Strong ROCE (29.4%) and ROE (22.2%) indicate efficient capital utilization.
• 📈 EPS of 79.6 ₹ supports valuation strength.
• 🛡️ Very low Debt-to-Equity (0.04) ensures financial stability.
• 💰 Dividend Yield (1.15%) provides steady shareholder returns.

Limitation

• ⚠️ RSI at 39.1 and negative MACD (-57.4) show weak momentum.
• 📉 Volume (89,721) is lower than 1-week average (1,30,810), indicating reduced trader interest.
• 🔎 High P/E (35.0) compared to industry PE (26.5) suggests overvaluation.

Company Negative News

• 📉 Decline in FII holding (-1.38%) shows reduced foreign investor confidence.
• 📉 PAT dropped from 365 Cr. to 304 Cr., reflecting earnings pressure.

Company Positive News

• 🌍 Increase in DII holding (+0.27%) signals domestic institutional support.
• 💰 PEG ratio (0.99) indicates reasonable valuation relative to growth.

Industry

• 🏭 Industry PE (26.5) is lower than GODFRYPHLP’s PE (35.0), suggesting premium valuation.
• 📊 Sector outlook remains competitive with cyclical demand patterns.

Conclusion

🔑 GODFRYPHLP is fundamentally strong with high profitability and low debt, but short-term technicals are weak. For swing trading, entry near 2,750–2,800 ₹ offers a cautious setup. Exit near 3,100–3,200 ₹ is advisable unless momentum indicators improve. Current weakness in RSI and MACD suggests patience before aggressive entry.

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