INDIGO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | INDIGO | Market Cap | 1,60,616 Cr. | Current Price | 4,154 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 35.4 | Book Value | 220 ₹ | Dividend Yield | 0.24 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 4,708 ₹ | DMA 200 | 5,105 ₹ |
| Chg in FII Hold | -3.45 % | Chg in DII Hold | 3.50 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 34.5 | MACD | -171 | Volume | 15,75,014 | Avg Vol 1Wk | 16,43,504 |
| Low price | 4,035 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.83 | Debt to equity | 8.83 |
| 52w Index | 5.43 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 17.0 |
📊 InterGlobe Aviation (INDIGO) shows weak technical momentum for swing trading. The RSI at 34.5 indicates near oversold conditions, but the MACD (-171) and the fact that the stock is trading below both its 50 DMA (4,708 ₹) and 200 DMA (5,105 ₹) reflect bearish sentiment. The optimal entry price would be near the recent low of 4,035–4,100 ₹. If already holding, consider exiting around 4,650–4,700 ₹, where resistance is expected, unless momentum strengthens.
✅ Positive
- ROE of 104% shows exceptional return on equity.
- EPS of 83.7 ₹ indicates strong earnings power.
- PEG ratio of 0.83 suggests reasonable valuation relative to growth.
- DII holdings increased (+3.50%), showing domestic investor confidence.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- High debt-to-equity ratio (8.83) raises financial risk.
- Quarterly profit variation (-21.7%) shows earnings volatility.
- FII holdings decreased (-3.45%), signaling reduced foreign investor interest.
📉 Company Negative News
- Quarterly PAT dropped from 2,614 Cr. loss to 1,912 Cr. profit, but still volatile.
- Stock price significantly below 52-week high of 6,232 ₹.
📈 Company Positive News
- Strong turnaround from losses to profit in recent quarter.
- EPS growth supports long-term investor confidence.
- Domestic institutional investors increasing stake.
🏭 Industry
- Industry PE at 17.0 vs. INDIGO’s PE of 35.4 suggests overvaluation.
- Aviation sector faces cyclical demand but benefits from rising travel trends.
🔎 Conclusion
Indigo has strong fundamentals with high ROE and EPS, but weak technical signals and high debt levels make it a cautious swing trade candidate. Entry near 4,035–4,100 ₹ could be considered if reversal signs appear. Exit strategy should target 4,650–4,700 ₹ unless momentum strengthens. Long-term investors may hold for sectoral growth, but short-term traders should remain cautious.