IGL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | IGL | Market Cap | 21,514 Cr. | Current Price | 154 ₹ | High / Low | 229 ₹ |
| Stock P/E | 15.0 | Book Value | 70.0 ₹ | Dividend Yield | 2.77 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 171 ₹ | DMA 200 | 191 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 359 Cr. | PAT Prev Qtr | 373 Cr. |
| RSI | 34.7 | MACD | -4.81 | Volume | 22,83,047 | Avg Vol 1Wk | 21,31,538 |
| Low price | 152 ₹ | High price | 229 ₹ | PEG Ratio | 4.45 | Debt to equity | 0.01 |
| 52w Index | 2.06 % | Qtr Profit Var | 25.4 % | EPS | 10.3 ₹ | Industry PE | 14.4 |
📊 IGL shows moderate potential for swing trading. The RSI at 34.7 indicates oversold conditions, while the MACD (-4.81) confirms bearish sentiment. The price is trading below both the 50 DMA (171 ₹) and 200 DMA (191 ₹), reflecting short-term weakness. Fundamentally, the company is strong with ROCE (20.8%) and ROE (15.7%), very low debt-to-equity (0.01), and a healthy dividend yield (2.77%). Quarterly profits declined slightly (PAT down from 373 Cr. to 359 Cr.), but EPS at 10.3 ₹ remains supportive. Valuation is fair with a P/E of 15.0 compared to industry average of 14.4, though PEG ratio (4.45) suggests growth is priced expensively. Institutional flows are mixed, with FII outflows (-0.21%) and minor DII inflows (+0.09%).
💡 Optimal Entry Price: Around 152–156 ₹, near current levels, with confirmation of reversal signals.
🚪 Exit Strategy (if already holding): Consider exiting near 170–175 ₹ if a rebound occurs, or cut losses if the price falls below 150 ₹ with strong volume.
Positive
- Strong ROCE (20.8%) and ROE (15.7%) highlight operational efficiency.
- Debt-to-equity ratio at 0.01 ensures financial stability.
- Dividend yield of 2.77% provides consistent income support.
- EPS at 10.3 ₹ supports earnings visibility.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- Quarterly profit declined (PAT down 3.7%).
- PEG ratio of 4.45 indicates growth is priced expensively.
- FII holdings decreased (-0.21%), showing reduced foreign confidence.
Company Negative News
- Quarterly profit dropped from 373 Cr. to 359 Cr.
- Weak technical indicators (RSI, MACD) suggest continued selling pressure.
- FII outflows (-0.21%) reduce foreign investor sentiment.
Company Positive News
- EPS at 10.3 ₹ supports earnings strength.
- DII inflows (+0.09%) show domestic investor confidence.
- Strong ROCE and ROE with minimal debt.
Industry
- Industry P/E at 14.4 is slightly lower than IGL’s 15.0, suggesting fair valuation.
- City gas distribution sector remains growth-oriented, influenced by energy demand and government policies.
Conclusion
✅ IGL is a moderately good candidate for swing trading, supported by strong fundamentals, dividend yield, and low debt. However, weak technicals, declining profits, and FII outflows limit short-term upside. Traders may enter around 152–156 ₹ with momentum confirmation and target exits near 170–175 ₹. If already holding, monitor closely and protect downside below 150 ₹.