INDGN - Swing Trade Analysis with AI Signals
Back to ListHere’s a structured swing trade analysis for IndiGo (INDGN) based on the provided parameters
Swing Trade Rating: 3.7
| Stock Code | INDGN | Market Cap | 12,484 Cr. | Current Price | 519 ₹ | High / Low | 597 ₹ |
| Stock P/E | 58.9 | Book Value | 86.4 ₹ | Dividend Yield | 0.39 % | ROCE | 14.3 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 508 ₹ | DMA 200 | 515 ₹ |
| Chg in FII Hold | -1.21 % | Chg in DII Hold | 0.23 % | PAT Qtr | 72.1 Cr. | PAT Prev Qtr | 34.8 Cr. |
| RSI | 53.4 | MACD | 1.59 | Volume | 1,47,532 | Avg Vol 1Wk | 1,77,827 |
| Low price | 414 ₹ | High price | 597 ₹ | PEG Ratio | 3.34 | Debt to equity | 0.03 |
| 52w Index | 57.2 % | Qtr Profit Var | 33.0 % | EPS | 8.80 ₹ | Industry PE | 39.7 |
📊 IndiGo shows moderate potential for swing trading. The stock is trading near both its 50 DMA (508 ₹) and 200 DMA (515 ₹), reflecting consolidation. RSI at 53.4 suggests neutral momentum, while MACD (1.59) indicates mild bullishness. Fundamentals are mixed: strong PAT growth (₹34.8 Cr. → ₹72.1 Cr.) and low debt-to-equity (0.03) are positives, but high P/E (58.9 vs industry 39.7) and PEG ratio (3.34) suggest overvaluation. Institutional activity is mixed with FII selling (-1.21%) and DII buying (+0.23%).
💡 Optimal Entry Price: Around 500–510 ₹ (near DMA support zone).
📈 Exit Strategy (if already holding): Consider booking profits near 560–570 ₹ (resistance zone below recent high of 597 ₹). Use a stop-loss around 490 ₹ to manage risk.
Positive
- ✅ PAT growth doubled sequentially (₹34.8 Cr. → ₹72.1 Cr.).
- ✅ EPS at 8.80 ₹ supports earnings visibility.
- ✅ Low debt-to-equity ratio (0.03), showing financial stability.
- ✅ Trading near DMA levels, offering technical support.
- ✅ DII holdings increased (+0.23%).
Limitation
- ⚠️ High P/E (58.9) compared to industry average (39.7).
- ⚠️ PEG ratio (3.34) suggests overvaluation relative to growth.
- ⚠️ ROE (10.7%) and ROCE (14.3%) are modest compared to valuation.
- ⚠️ Volume (1.47 lakh) lower than weekly average (1.77 lakh), showing reduced participation.
Company Negative News
- ❌ Decline in FII holdings (-1.21%).
- ❌ Valuation stretched with high P/E and PEG ratio.
Company Positive News
- ✅ Strong sequential PAT growth.
- ✅ Increase in DII holdings (+0.23%).
- ✅ Low debt levels support balance sheet strength.
Industry
- ✈️ Industry P/E at 39.7, lower than IndiGo’s 58.9, suggesting overvaluation.
- 📈 Aviation sector benefits from rising passenger demand but faces volatility from fuel costs and regulatory changes.
Conclusion
🔎 IndiGo is a moderately attractive swing trade candidate. Strong earnings growth and low debt support the stock, but stretched valuation and mixed institutional activity limit upside. Entry near ₹500–510 with exit around ₹560–570 is advisable, with strict risk management.
Would you like me to extend this into a sector overlay or a peer benchmarking to refine the swing trade outlook?