IFCI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | IFCI | Market Cap | 15,608 Cr. | Current Price | 57.9 ₹ | High / Low | 74.5 ₹ |
| Stock P/E | 51.5 | Book Value | 6.53 ₹ | Dividend Yield | 0.00 % | ROCE | 14.9 % |
| ROE | 2.97 % | Face Value | 10.0 ₹ | DMA 50 | 54.6 ₹ | DMA 200 | 54.5 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.00 % | PAT Qtr | 6.85 Cr. | PAT Prev Qtr | 16.1 Cr. |
| RSI | 55.9 | MACD | 1.13 | Volume | 1,78,79,466 | Avg Vol 1Wk | 3,38,03,821 |
| Low price | 35.7 ₹ | High price | 74.5 ₹ | PEG Ratio | 1.95 | Debt to equity | 2.03 |
| 52w Index | 57.2 % | Qtr Profit Var | 112 % | EPS | 1.12 ₹ | Industry PE | 19.7 |
📊 IFCI shows limited potential for swing trading. The stock is currently priced at ₹57.9, well below its 52-week high of ₹74.5, but trading above both 50 DMA (₹54.6) and 200 DMA (₹54.5), indicating short-term support. Technical indicators (RSI 55.9, MACD positive) suggest mild bullish momentum. However, high P/E, weak ROE, and declining profits reduce attractiveness.
💡 Optimal Entry Price: Around ₹54–55 (near DMA support).
📈 Exit Strategy: If already holding, consider exiting near ₹65–68 resistance levels, or maintain a stop-loss around ₹52.
✅ Positive
- Trading above both 50 DMA and 200 DMA, showing short-term strength.
- ROCE at 14.9% indicates decent capital efficiency.
- Quarterly profit variation shows improvement (+112%), signaling recovery potential.
- MACD at 1.13 suggests bullish crossover momentum.
⚠️ Limitation
- High P/E of 51.5 compared to industry average of 19.7, indicating overvaluation.
- ROE at 2.97% is very weak, reflecting poor shareholder returns.
- Book value of ₹6.53 is far below current price, showing stretched valuation.
- Dividend yield is 0%, offering no income support.
📉 Company Negative News
- Quarterly PAT dropped from ₹16.1 Cr. to ₹6.85 Cr., showing earnings pressure.
- FII holdings decreased (-0.02%), reflecting reduced foreign investor confidence.
- High debt-to-equity ratio of 2.03 adds financial risk.
📈 Company Positive News
- Quarterly profit variation (+112%) indicates potential turnaround.
- Technical indicators (RSI, MACD) show mild bullish momentum.
- Stock trading above DMA levels provides near-term support.
🏦 Industry
- Industry P/E at 19.7 is much lower than IFCI’s 51.5, suggesting overvaluation.
- Financial services sector remains volatile but benefits from credit demand and policy support.
🔎 Conclusion
IFCI earns a swing trade rating of 3.4. Entry near ₹54–55 offers a safer risk-reward setup, while profit booking should be considered near ₹65–68. Traders should remain cautious due to high valuation, weak ROE, and declining profits, but short-term technical momentum supports limited upside opportunities.