GODREJIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | GODREJIND | Market Cap | 34,112 Cr. | Current Price | 1,012 ₹ | High / Low | 1,392 ₹ |
| Stock P/E | 37,078 | Book Value | 52.7 ₹ | Dividend Yield | 0.00 % | ROCE | 8.13 % |
| ROE | 9.04 % | Face Value | 1.00 ₹ | DMA 50 | 1,018 ₹ | DMA 200 | 1,075 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.52 % | PAT Qtr | 99.0 Cr. | PAT Prev Qtr | -30.0 Cr. |
| RSI | 52.0 | MACD | -6.08 | Volume | 29,091 | Avg Vol 1Wk | 49,096 |
| Low price | 764 ₹ | High price | 1,392 ₹ | PEG Ratio | 198 | Debt to equity | 6.26 |
| 52w Index | 39.5 % | Qtr Profit Var | -35.1 % | EPS | 0.03 ₹ | Industry PE | 22.9 |
📊 Godrej Industries shows weak fundamentals with extremely high P/E, very low EPS, and high debt-to-equity ratio. Technical indicators (RSI ~52 neutral, MACD negative, price below 200 DMA) suggest limited momentum. While the recent quarter showed a profit recovery, overall earnings volatility and valuation concerns make it a risky candidate for swing trading.
💡 Optimal Entry Price: Around 980–1,000 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 1,080–1,100 ₹ resistance, or exit if price falls below 950 ₹.
Positive ✅
- Quarterly PAT improved to 99 Cr. from a loss of -30 Cr., showing recovery.
- DII holdings increased (+0.52%), reflecting some domestic institutional support.
- Price trading close to 50 DMA (1,018 ₹), offering short-term support.
Limitation ⚠️
- Extremely high P/E of 37,078 vs industry average of 22.9, indicating severe overvaluation.
- EPS of only 0.03 ₹ reflects poor earnings strength.
- ROCE (8.13%) and ROE (9.04%) are weak compared to peers.
- Debt-to-equity ratio of 6.26 shows heavy leverage risk.
- MACD negative (-6.08) signals bearish undertone.
- Quarterly profit variation (-35.1%) highlights earnings instability.
Company Negative News 📉
- No major external negative news reported, but financial metrics (high debt, weak EPS) are concerning.
Company Positive News 📈
- Quarterly profit recovery from losses indicates operational improvement.
- Slight increase in DII holdings shows domestic investor confidence.
Industry 🌐
- Industry P/E at 22.9 highlights sector trades at fair valuation compared to Godrej Industries’ extreme premium.
- Conglomerate sector performance depends on multiple business verticals, adding complexity.
Conclusion 📝
Godrej Industries is a weak candidate for swing trading due to extreme valuations, high debt, and poor earnings metrics. Entry near 980–1,000 ₹ may offer limited upside, but risk remains high. Exit around 1,080–1,100 ₹ or below 950 ₹ if momentum weakens. Suitable only for highly cautious traders; long-term investors may prefer to wait for stronger earnings stability.