INDIAMART - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | INDIAMART | Market Cap | 12,206 Cr. | Current Price | 2,029 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 17.8 | Book Value | 373 ₹ | Dividend Yield | 1.48 % | ROCE | 37.7 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 2,176 ₹ | DMA 200 | 2,307 ₹ |
| Chg in FII Hold | -3.25 % | Chg in DII Hold | 3.42 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 83.5 Cr. |
| RSI | 35.2 | MACD | -34.0 | Volume | 70,755 | Avg Vol 1Wk | 1,80,433 |
| Low price | 1,850 ₹ | High price | 2,799 ₹ | PEG Ratio | 0.71 | Debt to equity | 0.01 |
| 52w Index | 18.9 % | Qtr Profit Var | 65.0 % | EPS | 114 ₹ | Industry PE | 20.2 |
📊 Indiamart (INDIAMART) shows moderate potential for swing trading. The RSI at 35.2 indicates oversold conditions, while the MACD (-34.0) confirms bearish sentiment. The price is trading below both the 50 DMA (2,176 ₹) and 200 DMA (2,307 ₹), reflecting a downtrend. Fundamentally, the company is strong with high ROCE (37.7%) and ROE (30.0%), very low debt-to-equity (0.01), and consistent profitability. Quarterly profits have grown significantly (PAT up from 83.5 Cr. to 206 Cr.), and EPS is strong at 114 ₹. Valuation is reasonable with a P/E of 17.8 compared to industry average of 20.2, and PEG ratio of 0.71 suggests growth is fairly priced. However, weak technicals and FII outflows (-3.25%) limit short-term upside.
💡 Optimal Entry Price: Around 2,000–2,050 ₹, near current levels, with confirmation of reversal signals.
🚪 Exit Strategy (if already holding): Consider exiting near 2,200–2,250 ₹ if a rebound occurs, or cut losses if the price falls below 1,950 ₹ with strong volume.
Positive
- Strong ROCE (37.7%) and ROE (30.0%) highlight operational efficiency.
- Debt-to-equity ratio at 0.01 indicates financial stability.
- Quarterly profit growth (PAT up 65%).
- EPS at 114 ₹ supports earnings strength.
- DII holdings increased (+3.42%), showing domestic investor confidence.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- FII holdings decreased (-3.25%), showing reduced foreign confidence.
- Dividend yield is modest at 1.48%.
- Weak technical indicators (RSI, MACD) suggest continued selling pressure.
Company Negative News
- FII outflows (-3.25%) indicate weakening foreign investor sentiment.
- Technical weakness with MACD strongly negative.
Company Positive News
- Quarterly profit growth (PAT up from 83.5 Cr. to 206 Cr.).
- DII inflows (+3.42%) show domestic investor confidence.
- Strong EPS and profitability ratios.
Industry
- Industry P/E at 20.2 is slightly higher than Indiamart’s 17.8, suggesting relative undervaluation.
- E-commerce and B2B marketplace sector remains growth-oriented but volatile.
Conclusion
✅ Indiamart is a moderately good candidate for swing trading, supported by strong fundamentals, profit growth, and undervaluation relative to industry peers. However, weak technicals and FII outflows limit short-term upside. Traders may enter around 2,000–2,050 ₹ with momentum confirmation and target exits near 2,200–2,250 ₹. If already holding, monitor closely and protect downside below 1,950 ₹.