INDUSTOWER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | INDUSTOWER | Market Cap | 1,17,452 Cr. | Current Price | 445 ₹ | High / Low | 455 ₹ |
| Stock P/E | 16.5 | Book Value | 137 ₹ | Dividend Yield | 0.00 % | ROCE | 29.0 % |
| ROE | 32.4 % | Face Value | 10.0 ₹ | DMA 50 | 419 ₹ | DMA 200 | 389 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.71 % | PAT Qtr | 1,774 Cr. | PAT Prev Qtr | 1,837 Cr. |
| RSI | 60.0 | MACD | 4.83 | Volume | 54,07,773 | Avg Vol 1Wk | 88,71,322 |
| Low price | 313 ₹ | High price | 455 ₹ | PEG Ratio | 1.02 | Debt to equity | 0.58 |
| 52w Index | 93.0 % | Qtr Profit Var | -55.6 % | EPS | 27.0 ₹ | Industry PE | 16.6 |
📊 Indus Towers shows strong potential for swing trading. The stock is priced at ₹445, trading above both its 50 DMA (₹419) and 200 DMA (₹389), indicating bullish momentum. Technical indicators (RSI 60.0, MACD positive) suggest continued strength, though RSI is approaching overbought territory. Fundamentals are solid with ROCE 29.0%, ROE 32.4%, and reasonable valuation (P/E 16.5 vs industry 16.6). However, recent quarterly profit decline and lack of dividend yield limit attractiveness.
💡 Optimal Entry Price: Around ₹430–440 (near 50 DMA support).
📈 Exit Strategy: If already holding, consider exiting near ₹455–460 resistance levels, or maintain a stop-loss around ₹420.
✅ Positive
- Trading above both 50 DMA and 200 DMA, confirming bullish trend.
- ROCE of 29.0% and ROE of 32.4% highlight strong efficiency.
- EPS of ₹27.0 reflects solid profitability.
- DII holdings increased (+0.71%), showing domestic institutional support.
- PEG ratio of 1.02 suggests fair valuation relative to growth.
⚠️ Limitation
- Dividend yield is 0%, offering no income support.
- RSI at 60.0 indicates the stock is nearing overbought levels.
- Volume (54 lakh) is below weekly average, showing reduced participation.
- Debt-to-equity ratio of 0.58 indicates moderate leverage risk.
📉 Company Negative News
- Quarterly PAT declined from ₹1,837 Cr. to ₹1,774 Cr. (-55.6% variation).
- FII holdings decreased (-0.29%), reflecting reduced foreign investor confidence.
- Stock trading close to 52-week high (₹455), limiting immediate upside potential.
📈 Company Positive News
- DII inflows (+0.71%) reflect strong domestic institutional support.
- MACD at 4.83 indicates bullish crossover momentum.
- Strong efficiency ratios (ROCE, ROE) highlight operational strength.
🏦 Industry
- Industry P/E at 16.6 is in line with Indus Towers’ 16.5, suggesting fair valuation.
- Telecom infrastructure sector benefits from rising data demand and 5G rollout, offering long-term growth potential.
🔎 Conclusion
Indus Towers earns a swing trade rating of 4.0. Entry near ₹430–440 offers a favorable risk-reward setup, while profit booking should be considered near ₹455–460. Traders should remain cautious due to profit decline and FII outflows, but strong fundamentals, bullish technicals, and domestic institutional support provide a positive swing trading outlook.