HDFCLIFE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | HDFCLIFE | Market Cap | 1,55,778 Cr. | Current Price | 722 ₹ | High / Low | 821 ₹ |
| Stock P/E | 82.4 | Book Value | 81.4 ₹ | Dividend Yield | 0.29 % | ROCE | 6.53 % |
| ROE | 10.8 % | Face Value | 10.0 ₹ | DMA 50 | 744 ₹ | DMA 200 | 742 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.64 % | PAT Qtr | 421 Cr. | PAT Prev Qtr | 447 Cr. |
| RSI | 41.8 | MACD | -9.37 | Volume | 49,06,097 | Avg Vol 1Wk | 30,07,060 |
| Low price | 600 ₹ | High price | 821 ₹ | PEG Ratio | 7.42 | Debt to equity | 0.18 |
| 52w Index | 55.4 % | Qtr Profit Var | 1.40 % | EPS | 8.77 ₹ | Industry PE | 82.4 |
📊 HDFCLIFE shows moderate fundamentals but trades at a very high valuation (P/E 82.4, equal to industry PE). The RSI at 41.8 suggests the stock is approaching oversold territory, which may provide a short-term swing opportunity. However, weak momentum (MACD -9.37) and modest profit variation limit upside potential. The optimal entry price would be around ₹710–₹715, near the DMA support. If already holding, consider exiting around ₹780–₹790, close to the resistance zone.
✅ Positive
- Large market cap (₹1,55,778 Cr.) ensures stability and liquidity.
- Low debt-to-equity ratio (0.18) indicates financial strength.
- Strong trading volume compared to weekly average shows active investor interest.
- DII holdings increased (+0.64%), reflecting domestic institutional confidence.
⚠️ Limitation
- High P/E (82.4) and PEG ratio (7.42) suggest overvaluation.
- Dividend yield of 0.29% is very low, offering limited income.
- ROCE (6.53%) and ROE (10.8%) are modest compared to peers.
- MACD (-9.37) indicates bearish momentum in the short term.
📉 Company Negative News
- Decline in FII holdings (-0.55%) shows reduced foreign investor confidence.
- Quarterly PAT fell slightly from ₹447 Cr. to ₹421 Cr., indicating pressure on earnings.
📈 Company Positive News
- Stable EPS of ₹8.77 supports earnings visibility.
- Strong domestic institutional support with increased DII holdings.
- Stock trading near support levels, offering potential swing entry.
🏭 Industry
- Life insurance industry has long-term growth potential due to rising financial awareness.
- Industry PE (82.4) reflects high valuations across the sector.
- Sector outlook remains positive with increasing insurance penetration in India.
🔎 Conclusion
HDFCLIFE is a stable company with strong market presence and low debt, but its high valuation and weak momentum indicators limit short-term upside. For swing trading, entry near ₹710–₹715 is favorable, with an exit target around ₹780–₹790. While long-term fundamentals remain intact, traders should be cautious due to overvaluation and modest profitability growth.