IIFL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | IIFL | Market Cap | 21,901 Cr. | Current Price | 515 ₹ | High / Low | 675 ₹ |
| Stock P/E | 32.1 | Book Value | 162 ₹ | Dividend Yield | 0.77 % | ROCE | 6.57 % |
| ROE | 4.20 % | Face Value | 2.00 ₹ | DMA 50 | 567 ₹ | DMA 200 | 508 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | 0.03 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 211 Cr. |
| RSI | 38.5 | MACD | -26.6 | Volume | 18,72,932 | Avg Vol 1Wk | 34,87,485 |
| Low price | 280 ₹ | High price | 675 ₹ | PEG Ratio | -1.07 | Debt to equity | 4.55 |
| 52w Index | 59.5 % | Qtr Profit Var | 1,785 % | EPS | 16.1 ₹ | Industry PE | 18.9 |
📊 IIFL shows weak potential for swing trading at the current level. The stock is priced at ₹515, below its 50 DMA (₹567) and close to its 200 DMA (₹508), indicating short-term weakness. Technical indicators (RSI 38.5, MACD negative) suggest bearish momentum. While quarterly profits surged, high debt and weak ROE/ROCE limit attractiveness.
💡 Optimal Entry Price: Around ₹500–505 (near 200 DMA support).
📈 Exit Strategy: If already holding, consider exiting near ₹560–570 resistance levels, or maintain a stop-loss around ₹495.
✅ Positive
- Quarterly PAT jumped from ₹211 Cr. to ₹301 Cr., showing strong earnings growth (+1,785%).
- EPS of ₹16.1 indicates improving profitability.
- FII holdings increased (+1.00%), reflecting foreign investor confidence.
- Stock trading near 200 DMA support, offering potential rebound zone.
⚠️ Limitation
- High P/E of 32.1 compared to industry average of 18.9, suggesting overvaluation.
- ROE (4.20%) and ROCE (6.57%) are weak, showing poor efficiency.
- Debt-to-equity ratio of 4.55 is high, raising financial risk.
- PEG ratio of -1.07 indicates poor growth-adjusted valuation.
📉 Company Negative News
- Stock trading below 50 DMA signals short-term weakness.
- MACD at -26.6 shows bearish crossover momentum.
- Trading volume (18.7 lakh) is below weekly average, indicating reduced participation.
📈 Company Positive News
- Strong quarterly profit growth boosts sentiment.
- FII inflows (+1.00%) show foreign investor optimism.
- Dividend yield of 0.77% provides modest shareholder returns.
🏦 Industry
- Industry P/E at 18.9 is lower than IIFL’s 32.1, suggesting relative overvaluation.
- Financial services sector remains supported by credit demand but faces margin pressures.
🔎 Conclusion
IIFL earns a swing trade rating of 3.2. Entry near ₹500–505 offers a safer risk-reward setup, while profit booking should be considered near ₹560–570. Traders should remain cautious due to weak technicals, high debt, and poor efficiency ratios, but strong quarterly profit growth provides limited upside potential.