GODREJIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.6
| Stock Code | GODREJIND | Market Cap | 37,403 Cr. | Current Price | 1,111 ₹ | High / Low | 1,381 ₹ |
| Stock P/E | 540 | Book Value | 52.5 ₹ | Dividend Yield | 0.00 % | ROCE | 7.38 % |
| ROE | 3.99 % | Face Value | 1.00 ₹ | DMA 50 | 1,041 ₹ | DMA 200 | 1,031 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.18 % | PAT Qtr | 13.0 Cr. | PAT Prev Qtr | -12.8 Cr. |
| RSI | 58.1 | MACD | 2.01 | Volume | 5,41,248 | Avg Vol 1Wk | 2,08,537 |
| Low price | 744 ₹ | High price | 1,381 ₹ | PEG Ratio | -17.6 | Debt to equity | 6.25 |
| 52w Index | 57.7 % | Qtr Profit Var | 119 % | EPS | 1.81 ₹ | Industry PE | 18.4 |
Godrej Industries (GODREJIND) shows weak fundamentals with extremely high P/E (540) compared to industry average (18.4), low ROCE (7.38%) and ROE (3.99%), and a negative PEG ratio (-17.6) indicating unsustainable valuation. Debt-to-equity is very high at 6.25, raising financial risk. The current price (₹1,111) is above both the 50 DMA (₹1,041) and 200 DMA (₹1,031), showing short-term bullishness. RSI at 58.1 and MACD at 2.01 suggest mild positive momentum, while volume is significantly higher than average, reflecting investor activity. Despite a profit recovery (₹-12.8 Cr. → ₹13 Cr.), fundamentals remain weak, making this a risky swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹1,020–₹1,040 (near 200 DMA support) is favorable only for high-risk traders.
📈 Exit Strategy
If already holding, consider exiting near ₹1,100–₹1,120 to reduce risk exposure. A strict stop-loss below ₹1,000 is advisable.
✅ Positive
- 📌 Quarterly profit recovery from losses (-₹12.8 Cr.) to profit (₹13 Cr.).
- 📌 EPS improved to ₹1.81.
- 📌 Trading volume (5,41,248) well above weekly average (2,08,537), showing investor interest.
- 📌 MACD positive (2.01) indicates mild bullish momentum.
⚠️ Limitation
- 📌 Extremely high P/E (540) compared to industry average (18.4).
- 📌 Low ROCE (7.38%) and ROE (3.99%) reflect poor efficiency.
- 📌 Debt-to-equity ratio of 6.25 indicates high leverage risk.
- 📌 Negative PEG ratio (-17.6) signals unsustainable valuation.
📰 Company Negative News
- 📌 Decline in FII holdings (-0.39%) shows reduced foreign investor confidence.
- 📌 High leverage raises concerns about long-term stability.
🌟 Company Positive News
- 📌 Profit turnaround from losses to positive earnings.
- 📌 Increase in DII holdings (+0.18%) reflects some domestic investor support.
🏭 Industry
- 📌 Industry P/E at 18.4 is far lower than GODREJIND’s 540, showing extreme premium valuation.
- 📌 Diversified sector outlook remains stable, but GODREJIND lags peers in efficiency.
🔎 Conclusion
Godrej Industries is a weak swing trade candidate due to extreme overvaluation, high debt, and poor efficiency. While profit recovery and mild bullish momentum are positives, risks outweigh rewards. Entry near ₹1,020–₹1,040 may be considered cautiously, but exit around ₹1,100–₹1,120 is advisable for existing holders to limit exposure.
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