INDIAMART - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | INDIAMART | Market Cap | 12,553 Cr. | Current Price | 2,094 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 23.9 | Book Value | 423 ₹ | Dividend Yield | 1.43 % | ROCE | 28.6 % |
| ROE | 21.8 % | Face Value | 10.0 ₹ | DMA 50 | 2,126 ₹ | DMA 200 | 2,256 ₹ |
| Chg in FII Hold | 0.89 % | Chg in DII Hold | -2.87 % | PAT Qtr | 69.6 Cr. | PAT Prev Qtr | 206 Cr. |
| RSI | 46.3 | MACD | 6.41 | Volume | 2,10,483 | Avg Vol 1Wk | 1,13,370 |
| Low price | 1,925 ₹ | High price | 2,799 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.01 |
| 52w Index | 19.4 % | Qtr Profit Var | -69.9 % | EPS | 87.4 ₹ | Industry PE | 26.6 |
INDIAMART shows strong fundamentals with high ROE (21.8%) and ROCE (28.6%), very low debt-to-equity (0.01), and a healthy dividend yield (1.43%). The stock trades slightly below its 50 DMA (2,126 ₹) and 200 DMA (2,256 ₹), suggesting short-term weakness. RSI (46.3) is neutral, while MACD (6.41) indicates mild bullishness. Valuation is reasonable with a P/E of 23.9 compared to industry average of 26.6, and PEG ratio of 1.00 suggests fair growth alignment. However, quarterly profit dropped sharply (-69.9%), raising caution for near-term swings.
✅ Optimal Entry Price: Around 2,050–2,100 ₹ (near support levels)
📤 Exit Strategy if Holding: Exit near 2,250–2,300 ₹ resistance zone, or if price falls below 2,000 ₹ support.
🌟 Positive
- Strong ROE (21.8%) and ROCE (28.6%).
- Low debt-to-equity ratio (0.01), indicating financial stability.
- Dividend yield of 1.43% provides passive income.
- P/E (23.9) is lower than industry average (26.6), suggesting fair valuation.
⚠️ Limitation
- Quarterly profit dropped significantly (-69.9%).
- Stock trading below DMA 50 and DMA 200, showing short-term weakness.
- DII holdings decreased (-2.87%), indicating reduced domestic institutional confidence.
📰 Company Negative News
- Sharp decline in quarterly PAT (69.6 Cr vs 206 Cr).
- Profitability volatility raises concerns for traders.
📈 Company Positive News
- FII holdings increased (+0.89%), showing foreign investor confidence.
- EPS remains strong at 87.4 ₹.
- Valuation metrics (P/E, PEG) are reasonable compared to peers.
🏭 Industry
- Industry PE is 26.6, slightly higher than INDIAMART’s 23.9, suggesting relative undervaluation.
- Sector remains competitive with strong digital marketplace demand.
✅ Conclusion
INDIAMART is a fundamentally strong candidate for swing trading with solid efficiency ratios, low debt, and fair valuation. However, the sharp quarterly profit decline and short-term technical weakness warrant caution. Entry near 2,050–2,100 ₹ is favorable, with exit around 2,250–2,300 ₹. Traders should monitor earnings stability and institutional activity closely.