IIFL - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.6
| Stock Code | IIFL | Market Cap | 24,042 Cr. | Current Price | 565 ₹ | High / Low | 593 ₹ |
| Stock P/E | 60.5 | Book Value | 162 ₹ | Dividend Yield | 0.00 % | ROCE | 6.57 % |
| ROE | 4.20 % | Face Value | 2.00 ₹ | DMA 50 | 539 ₹ | DMA 200 | 478 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 1.04 % | PAT Qtr | 211 Cr. | PAT Prev Qtr | 133 Cr. |
| RSI | 51.4 | MACD | 7.94 | Volume | 7,89,742 | Avg Vol 1Wk | 5,96,478 |
| Low price | 280 ₹ | High price | 593 ₹ | PEG Ratio | -2.01 | Debt to equity | 4.55 |
| 52w Index | 91.2 % | Qtr Profit Var | 86.3 % | EPS | 9.36 ₹ | Industry PE | 21.2 |
📊 IIFL shows moderate potential for swing trading. The stock is trading above both its 50 DMA (₹539) and 200 DMA (₹478), reflecting strong technical support. RSI at 51.4 suggests neutral momentum, while MACD positive (7.94) indicates mild bullishness. An optimal entry would be near ₹555–₹560. If already holding, consider exiting around ₹585–₹593, close to its recent high and resistance zone.
Positive
- ✅ Quarterly PAT growth from ₹133 Cr. to ₹211 Cr. (+86.3%) highlights strong earnings momentum.
- ✅ FII holdings increased by 0.15% and DII holdings increased by 1.04%, showing institutional confidence.
- ✅ Trading volumes above average (7.89L vs 5.96L) reflect strong market participation.
- ✅ 52-week performance of 91.2% shows strong investor sentiment.
Limitation
- ⚠️ High P/E of 60.5 compared to industry average of 21.2 suggests overvaluation.
- ⚠️ ROCE (6.57%) and ROE (4.20%) are relatively weak compared to peers.
- ⚠️ Debt-to-equity ratio of 4.55 indicates high leverage risk.
- ⚠️ Dividend yield of 0.00% offers no income support for investors.
- ⚠️ Negative PEG ratio (-2.01) suggests valuation concerns relative to growth prospects.
Company Negative News
- ❌ High leverage may limit flexibility in volatile market conditions.
- ❌ Weak profitability metrics with modest ROE and EPS (₹9.36).
Company Positive News
- 🌟 Strong quarterly profit growth boosts investor confidence.
- 🌟 Institutional support from both FII and DII investors adds resilience.
- 🌟 Technical strength with price trading above DMA levels.
Industry
- 🏭 Financial services industry trades at PE of 21.2, much lower than IIFL’s PE of 60.5, suggesting relative overvaluation.
- 🏭 Sector growth driven by credit expansion and wealth management demand supports long-term prospects.
Conclusion
📌 IIFL is a moderately strong candidate for swing trading, supported by profit growth, institutional interest, and technical strength. Entry near ₹555–₹560 is optimal, with exit around ₹585–₹593. Traders should be cautious of high valuation, weak ROCE/ROE, and high leverage, but momentum remains favorable in the short term.
I can also prepare a peer comparison with Motilal Oswal or Edelweiss to highlight relative swing trade opportunities in the financial services sector.
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