INDIGO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | INDIGO | Market Cap | 1,91,658 Cr. | Current Price | 4,957 ₹ | High / Low | 6,232 ₹ |
| Stock P/E | 42.3 | Book Value | 220 ₹ | Dividend Yield | 0.20 % | ROCE | 17.3 % |
| ROE | 104 % | Face Value | 10.0 ₹ | DMA 50 | 5,037 ₹ | DMA 200 | 5,267 ₹ |
| Chg in FII Hold | -3.45 % | Chg in DII Hold | 3.50 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | -2,614 Cr. |
| RSI | 54.2 | MACD | -75.6 | Volume | 10,59,788 | Avg Vol 1Wk | 15,85,726 |
| Low price | 4,158 ₹ | High price | 6,232 ₹ | PEG Ratio | 0.99 | Debt to equity | 8.83 |
| 52w Index | 38.5 % | Qtr Profit Var | -21.7 % | EPS | 83.7 ₹ | Industry PE | 18.0 |
📊 InterGlobe Aviation (INDIGO) shows strong fundamentals with exceptional ROE (104%) and a sharp turnaround in profitability compared to the previous quarter. However, high debt levels, expensive valuation (P/E 42.3 vs. industry 18.0), and weak technical indicators (negative MACD, price below 50 & 200 DMA) make it a risky candidate for swing trading. It offers moderate potential but requires strict risk management.
💡 Optimal Entry Price: Around 4,850 ₹ – 4,900 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 5,050 ₹ – 5,100 ₹ (resistance at 50 DMA) or place a stop-loss below 4,800 ₹.
✅ Positive
- ROE of 104% highlights strong shareholder returns.
- Quarterly PAT improved significantly from -2,614 Cr. to +1,912 Cr.
- DII holdings increased (+3.50%), showing domestic institutional confidence.
- PEG ratio of 0.99 indicates fair valuation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (8.83) raises financial risk.
- Stock trading below 50 DMA (5,037 ₹) and 200 DMA (5,267 ₹) signals bearish trend.
- MACD at -75.6 shows strong negative momentum.
- Quarterly profit variation (-21.7%) indicates earnings volatility.
📉 Company Negative News
- Decline in FII holdings (-3.45%) reflects reduced foreign investor confidence.
- Stock significantly below 52-week high (6,232 ₹), showing weakness in price action.
📈 Company Positive News
- Strong recovery in profitability compared to previous quarter.
- EPS of 83.7 ₹ provides solid earnings visibility.
🏭 Industry
- Industry PE at 18.0 vs. INDIGO PE at 42.3 suggests overvaluation compared to peers.
- Aviation sector benefits from rising passenger demand, but faces fuel cost and regulatory risks.
🔎 Conclusion
Indigo shows strong fundamentals but faces technical weakness and high debt risk. Swing traders may enter near 4,850 ₹ – 4,900 ₹ with a target around 5,050 ₹ – 5,100 ₹. Stop-loss below 4,800 ₹ is essential. The stock offers moderate swing trade potential with a rating of 3.6.