IGL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.9

📊 IGL shows fair potential for swing trading. The stock is currently priced at ₹194, below both its 50 DMA (₹200) and 200 DMA (₹207), indicating short-term weakness. RSI at 51.0 suggests neutral momentum, while MACD (-4.57) reflects bearish sentiment. Strong fundamentals with ROCE (20.8%) and ROE (15.7%) support medium-term prospects, but high PEG ratio (5.89) and recent profit decline (-13.6%) raise caution. Optimal entry would be near ₹185–190, close to support. If already holding, consider exiting around ₹210–215, near resistance levels.

✅ Positive

• Healthy ROCE (20.8%) and ROE (15.7%)
• Low debt-to-equity ratio (0.01)
• Attractive dividend yield of 2.15%
• Positive institutional inflows (FII +0.39%, DII +0.09%)
• EPS of ₹9.74 supports valuation strength

⚠️ Limitation

• Stock trading below both 50 DMA and 200 DMA
• Weak technical momentum (MACD negative)
• PEG ratio (5.89) suggests overvaluation relative to growth
• Quarterly profit decline (-13.6%)

📉 Company Negative News

• Short-term technical weakness with bearish indicators
• Recent profit decline despite strong fundamentals

📈 Company Positive News

• Strong fundamentals with high efficiency ratios
• Consistent institutional investor support
• Dividend yield of 2.15% adds shareholder value

🏭 Industry

• Industry PE (20.4) is close to IGL’s PE (19.8), showing fair valuation
• City gas distribution sector remains resilient with steady demand growth

📝 Conclusion

IGL presents a cautious swing trade opportunity. Entry near ₹185–190 is optimal, while exit should be considered around ₹210–215. Strong fundamentals and institutional inflows support medium-term prospects, but weak technicals and profit decline warrant careful risk management.

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