IGL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | IGL | Market Cap | 24,301 Cr. | Current Price | 174 ₹ | High / Low | 229 ₹ |
| Stock P/E | 17.8 | Book Value | 70.0 ₹ | Dividend Yield | 2.45 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 187 ₹ | DMA 200 | 200 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 373 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 36.0 | MACD | -4.36 | Volume | 25,38,117 | Avg Vol 1Wk | 22,16,860 |
| Low price | 170 ₹ | High price | 229 ₹ | PEG Ratio | 5.29 | Debt to equity | 0.01 |
| 52w Index | 5.89 % | Qtr Profit Var | -13.6 % | EPS | 9.74 ₹ | Industry PE | 19.0 |
📊 IGL shows moderate potential for swing trading. The stock is priced at ₹174, below both its 50 DMA (₹187) and 200 DMA (₹200), indicating short-term weakness. Technical indicators (RSI 36.0, MACD negative) suggest bearish momentum with oversold tendencies. Fundamentals are decent with ROCE 20.8%, ROE 15.7%, and very low debt (0.01). However, high PEG ratio (5.29) and declining quarterly profit (-13.6%) limit attractiveness.
💡 Optimal Entry Price: Around ₹170–172 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹185–190 resistance levels, or maintain a stop-loss around ₹168.
✅ Positive
- ROCE of 20.8% and ROE of 15.7% highlight solid efficiency.
- Debt-to-equity ratio of 0.01 shows negligible leverage risk.
- Dividend yield of 2.45% provides steady shareholder returns.
- EPS of ₹9.74 reflects consistent profitability.
- DII holdings increased slightly (+0.09%), showing domestic support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- PEG ratio of 5.29 indicates expensive growth valuation.
- Quarterly profit variation (-13.6%) shows earnings pressure.
- RSI at 36.0 suggests oversold conditions but weak sentiment.
📉 Company Negative News
- FII holdings decreased (-0.21%), reflecting reduced foreign investor confidence.
- MACD at -4.36 shows bearish crossover momentum.
- Stock trading far below 52-week high (₹229), limiting bullish sentiment.
📈 Company Positive News
- Dividend yield of 2.45% supports investor interest.
- DII inflows (+0.09%) reflect domestic institutional support.
- Strong efficiency ratios (ROCE, ROE) highlight operational strength.
🏦 Industry
- Industry P/E at 19.0 is slightly higher than IGL’s 17.8, suggesting fair valuation.
- City gas distribution sector benefits from rising demand for cleaner fuels, but remains sensitive to regulatory changes and input costs.
🔎 Conclusion
IGL earns a swing trade rating of 3.6. Entry near ₹170–172 offers a safer risk-reward setup, while profit booking should be considered near ₹185–190. Traders should remain cautious due to weak technicals, high PEG ratio, and declining profits, but strong fundamentals, low debt, and dividend yield provide medium-term support.