IIFL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 IIFL shows strong momentum and earnings growth. Entry near ₹520–₹525 is optimal. If already held, consider exiting near ₹555–₹560.

📈 Positive

• Quarterly PAT growth: ₹211 Cr. vs ₹133 Cr. — up 86.3%
• MACD 19.5 and RSI 71.2 — strong bullish momentum
• Trading well above DMA 50 (₹483) and DMA 200 (₹449) — confirms uptrend
• EPS ₹9.36 and improving institutional interest (FII +0.15%, DII +1.04%)

⚠️ Limitation

• P/E 57.7 vs industry PE 22.6 — expensive valuation
• ROCE 6.57% and ROE 4.20% — weak capital efficiency
• PEG ratio -1.92 — unreliable growth valuation metric
• Volume below weekly average — short-term interest may be cooling
• Dividend yield 0% — no income support

🚫 Company Negative News

• Stock near 52-week high — risk of short-term profit booking
• Valuation concerns due to high P/E and low ROE

✅ Company Positive News

• Strong Q2 performance driven by growth in lending and wealth management segments
• Positive sentiment from institutional accumulation
• Analysts maintain bullish targets above ₹570

🏭 Industry

• NBFC sector benefits from credit demand, financial inclusion, and digital lending growth
• IIFL trades at a premium to industry PE (22.6) — reflects growth expectations

🧾 Conclusion

• IIFL is a momentum-driven swing candidate with strong earnings and technical breakout
• Best entry: ₹520–₹525 near minor support and breakout zone
• If already held, exit near ₹555–₹560 — resistance zone and 52-week high
• Watch for RSI cooling below 65 and MACD continuation for re-entry

I can also compare IIFL with other NBFCs to help you identify stronger swing setups.