INDIGO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | INDIGO | Market Cap | 1,64,795 Cr. | Current Price | 4,262 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 36.4 | Book Value | 220 ₹ | Dividend Yield | 0.23 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 4,519 ₹ | DMA 200 | 4,937 ₹ |
| Chg in FII Hold | -3.35 % | Chg in DII Hold | 3.06 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 41.7 | MACD | -12.6 | Volume | 12,79,448 | Avg Vol 1Wk | 16,15,977 |
| Low price | 3,895 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.85 | Debt to equity | 8.83 |
| 52w Index | 15.7 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 17.8 |
📊 InterGlobe Aviation (INDIGO) shows mixed potential for swing trading. The RSI at 41.7 suggests the stock is nearing oversold territory, while the MACD (-12.6) indicates bearish momentum. The current price (₹4,262) is below both the 50 DMA (₹4,519) and 200 DMA (₹4,937), reflecting weakness. However, strong fundamentals like ROE (104%) and recent turnaround in profitability (PAT ₹1,912 Cr. vs. loss of ₹2,614 Cr. in the previous quarter) provide optimism. High debt-to-equity (8.83) remains a concern.
💡 Optimal Entry Price: Around ₹4,000–₹4,100, close to recent support levels.
📈 Exit Strategy (if already holding): Consider booking profits near ₹4,500 (50 DMA resistance) or ₹4,900 (200 DMA resistance) if momentum improves.
✅ Positive
- ROE of 104% highlights strong return on equity.
- PEG ratio of 0.85 suggests reasonable valuation relative to growth.
- Recent PAT turnaround from loss to profit indicates recovery.
- DII holdings increased (+3.06%), showing domestic investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (8.83) raises financial risk.
- Price trading below both 50 DMA and 200 DMA signals weakness.
- FII holdings decreased (-3.35%), showing reduced foreign investor interest.
📉 Company Negative News
- Quarterly profit variation shows -21.7% decline.
- Stock trading far below 52-week high (₹6,232), reflecting weak sentiment.
📈 Company Positive News
- Strong recovery in PAT (₹1,912 Cr. vs. loss of ₹2,614 Cr.).
- EPS of ₹83.7 indicates solid earnings power.
🏭 Industry
- Industry PE at 17.8 vs. INDIGO’s PE of 36.4 suggests overvaluation.
- Aviation sector faces cyclical challenges but benefits from rising travel demand.
🔎 Conclusion
INDIGO is fundamentally strong with a sharp earnings recovery, but technical indicators remain weak. Swing traders may enter near ₹4,000–₹4,100, targeting exits around ₹4,500–₹4,900. Caution is advised due to high debt levels and bearish momentum, making risk management essential.