INDHOTEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | INDHOTEL | Market Cap | 97,698 Cr. | Current Price | 686 ₹ | High / Low | 859 ₹ |
| Stock P/E | 65.4 | Book Value | 80.5 ₹ | Dividend Yield | 0.33 % | ROCE | 16.6 % |
| ROE | 13.1 % | Face Value | 1.00 ₹ | DMA 50 | 700 ₹ | DMA 200 | 729 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 1.26 % | PAT Qtr | 289 Cr. | PAT Prev Qtr | 245 Cr. |
| RSI | 50.6 | MACD | -11.5 | Volume | 9,22,585 | Avg Vol 1Wk | 23,01,502 |
| Low price | 627 ₹ | High price | 859 ₹ | PEG Ratio | 0.19 | Debt to equity | 0.10 |
| 52w Index | 25.6 % | Qtr Profit Var | 12.5 % | EPS | 10.4 ₹ | Industry PE | 31.0 |
📊 Indian Hotels shows moderate-to-strong potential for swing trading. The stock is priced at ₹686, below both its 50 DMA (₹700) and 200 DMA (₹729), indicating short-term weakness. Technical indicators (RSI 50.6, MACD negative) suggest consolidation. Fundamentals are solid with ROCE 16.6%, ROE 13.1%, and very low debt (0.10). However, high P/E (65.4 vs industry 31.0) and weak dividend yield limit attractiveness. Institutional flows are mixed, with FII outflows but DII inflows supporting stability.
💡 Optimal Entry Price: Around ₹670–680 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹740–750 resistance levels, or maintain a stop-loss around ₹660.
✅ Positive
- ROCE of 16.6% and ROE of 13.1% show decent efficiency.
- Debt-to-equity ratio of 0.10 indicates negligible leverage risk.
- Quarterly PAT improved from ₹245 Cr. to ₹289 Cr. (+12.5%).
- PEG ratio of 0.19 suggests undervaluation relative to growth.
- DII holdings increased (+1.26%), showing domestic institutional support.
⚠️ Limitation
- P/E of 65.4 is significantly higher than industry average of 31.0, suggesting overvaluation.
- Dividend yield of 0.33% is negligible, offering little income support.
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- Volume (9.2 lakh) is far below weekly average, showing reduced participation.
📉 Company Negative News
- FII holdings decreased (-1.05%), reflecting reduced foreign investor confidence.
- MACD at -11.5 shows bearish crossover momentum.
- Stock trading well below 52-week high (₹859), limiting bullish sentiment.
📈 Company Positive News
- Quarterly profit growth (+12.5%) supports near-term optimism.
- DII inflows (+1.26%) reflect strong domestic support.
- Low debt provides financial stability.
🏦 Industry
- Industry P/E at 31.0 is much lower than Indian Hotels’ 65.4, suggesting relative overvaluation.
- Hospitality sector benefits from rising travel demand and tourism recovery, but remains cyclical.
🔎 Conclusion
Indian Hotels earns a swing trade rating of 3.9. Entry near ₹670–680 offers a safer risk-reward setup, while profit booking should be considered near ₹740–750. Traders should remain cautious due to high valuation, weak technicals, and FII outflows, but strong fundamentals, profit growth, and domestic institutional support provide medium-term opportunities.