GODREJAGRO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | GODREJAGRO | Market Cap | 11,003 Cr. | Current Price | 572 ₹ | High / Low | 876 ₹ |
| Stock P/E | 19.4 | Book Value | 151 ₹ | Dividend Yield | 1.93 % | ROCE | 23.4 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 590 ₹ | DMA 200 | 628 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.48 % | PAT Qtr | 88.2 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 41.6 | MACD | 0.54 | Volume | 1,82,488 | Avg Vol 1Wk | 1,71,282 |
| Low price | 506 ₹ | High price | 876 ₹ | PEG Ratio | 0.60 | Debt to equity | 0.30 |
| 52w Index | 17.7 % | Qtr Profit Var | 29.6 % | EPS | 27.4 ₹ | Industry PE | 22.2 |
Godrej Agrovet shows decent fundamentals with strong ROCE (23.4%) and ROE (20.8%), supported by a moderate debt-to-equity ratio (0.30). The stock trades at a fair P/E (19.4 vs industry 22.2) and has a favorable PEG ratio (0.60), suggesting reasonable valuation relative to growth. However, quarterly PAT declined from 131 Cr. to 88.2 Cr. (-32.7%), raising concerns about earnings momentum. Technical indicators are weak: RSI (41.6) is neutral-bearish, MACD (0.54) is flat, and the stock is trading below both 50 DMA (590 ₹) and 200 DMA (628 ₹), indicating short-term weakness despite long-term potential.
💡 Optimal Entry Price: 555–565 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider profit booking near 600–610 ₹ (resistance zone at DMA levels) or exit if price falls below 540 ₹ (support breakdown).
✅ Positive
- Strong ROCE and ROE compared to peers
- Reasonable P/E and favorable PEG ratio (0.60)
- Dividend yield of 1.93% provides stable returns
- DII holdings increased (+0.48%), showing domestic investor confidence
⚠️ Limitation
- Quarterly PAT declined significantly (-32.7%)
- Stock trading below DMA levels, showing short-term weakness
- FII holdings slightly decreased (-0.03%)
- Debt-to-equity ratio (0.30) is higher than some peers
📉 Company Negative News
- No major negative news reported, but earnings decline and technical weakness are concerns.
📈 Company Positive News
- Strong operational efficiency with high ROCE and ROE
- Dividend payout supports investor returns
- Domestic institutional investors increasing stake
🏭 Industry
- Industry P/E is slightly higher (22.2), making Godrej Agrovet fairly valued compared to peers.
- Agribusiness sector remains resilient with long-term demand for food and animal feed products.
🔎 Conclusion
Godrej Agrovet is a cautious swing trade candidate. While fundamentals are strong and valuation is fair, declining profits and weak technical signals limit short-term upside. Entry near 555–565 ₹ offers a controlled risk-reward, with profit booking near 600–610 ₹. Traders should monitor earnings trends and RSI for confirmation before entering.