⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

IGL - Swing Trade Analysis with AI Signals

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Rating: 4

Last Updated Time : 05 May 26, 03:38 pm

📊 Swing Trade Rating: 4.0

Stock Code IGL Market Cap 23,342 Cr. Current Price 167 ₹ High / Low 229 ₹
Stock P/E 16.2 Book Value 70.0 ₹ Dividend Yield 2.55 % ROCE 20.8 %
ROE 15.7 % Face Value 2.00 ₹ DMA 50 164 ₹ DMA 200 184 ₹
Chg in FII Hold 0.08 % Chg in DII Hold -0.92 % PAT Qtr 359 Cr. PAT Prev Qtr 373 Cr.
RSI 58.0 MACD 2.34 Volume 11,38,694 Avg Vol 1Wk 50,95,708
Low price 142 ₹ High price 229 ₹ PEG Ratio 4.82 Debt to equity 0.01
52w Index 28.9 % Qtr Profit Var 25.4 % EPS 10.3 ₹ Industry PE 21.9

Analysis: IGL is trading at ₹167, slightly above its 50 DMA (₹164) but below the 200 DMA (₹184), showing short-term strength with long-term resistance overhead. RSI at 58.0 indicates neutral momentum, while MACD at 2.34 suggests a mild positive crossover. Valuation is attractive with a P/E of 16.2 compared to industry average of 21.9, and EPS of ₹10.3 supports earnings quality. ROCE at 20.8% and ROE at 15.7% are strong, highlighting efficiency. Debt-to-equity ratio is very low (0.01), showing financial stability. PAT declined slightly (₹359 Cr vs ₹373 Cr), but quarterly profit variation (+25.4%) supports growth. Dividend yield at 2.55% adds investor appeal. Swing trade potential is good, with entry near support and exit near resistance.

Optimal Entry Price: ₹162–165, near short-term support.

Exit Strategy (if holding): Consider exiting around ₹178–182, aligning with resistance near 200 DMA.

✅ Positive

  • Attractive valuation (P/E 16.2 vs industry 21.9).
  • Strong ROCE (20.8%) and ROE (15.7%).
  • Debt-free structure (Debt-to-equity 0.01).

⚠️ Limitation

  • Trading below 200 DMA (₹184), showing overhead resistance.
  • PAT declined slightly (₹373 Cr → ₹359 Cr).
  • PEG ratio at 4.82 indicates expensive growth valuation.

📉 Company Negative News

  • DII holdings decreased (-0.92%).
  • Short-term earnings decline in PAT.

📈 Company Positive News

  • Quarterly profit variation strong (+25.4%).
  • FII holdings increased slightly (+0.08%).

🏭 Industry

  • Industry P/E at 21.9, showing IGL trades at a discount.
  • Energy distribution sector benefits from rising demand but remains cyclical.

🔎 Conclusion

IGL is a good candidate for swing trading with attractive valuation, strong efficiency metrics, and debt-free balance sheet. Entry near ₹162–165 may be considered, with exit around ₹178–182. While fundamentals are supportive, caution is advised due to resistance near 200 DMA and recent PAT decline.

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