INOXINDIA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | INOXINDIA | Market Cap | 10,726 Cr. | Current Price | 1,183 ₹ | High / Low | 1,289 ₹ |
| Stock P/E | 43.2 | Book Value | 111 ₹ | Dividend Yield | 0.17 % | ROCE | 37.0 % |
| ROE | 27.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,151 ₹ | DMA 200 | 1,148 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.57 % | PAT Qtr | 65.4 Cr. | PAT Prev Qtr | 57.1 Cr. |
| RSI | 55.7 | MACD | 8.86 | Volume | 1,85,616 | Avg Vol 1Wk | 95,154 |
| Low price | 891 ₹ | High price | 1,289 ₹ | PEG Ratio | 2.16 | Debt to equity | 0.10 |
| 52w Index | 73.3 % | Qtr Profit Var | 25.8 % | EPS | 26.8 ₹ | Industry PE | 22.9 |
📊 INOX India shows relatively strong fundamentals and moderate technical strength for swing trading. The RSI at 55.7 indicates neutral momentum, while the MACD (8.86) suggests bullish sentiment. The stock is trading slightly above both the 50 DMA (1,151 ₹) and 200 DMA (1,148 ₹), confirming stability and potential upward movement. Fundamentally, the company has strong ROCE (37%) and ROE (27.9%), with low debt-to-equity (0.10), making it financially sound. However, the high P/E (43.2 vs industry 22.9) and elevated PEG ratio (2.16) suggest the stock is expensive relative to peers.
💡 Optimal Entry Price: Around 1,160–1,180 ₹, close to current levels, with confirmation of bullish momentum.
🚪 Exit Strategy (if already holding): Consider exiting near 1,250–1,280 ₹ if momentum continues, or protect downside by exiting below 1,140 ₹ if weakness emerges.
Positive
- Strong ROCE (37%) and ROE (27.9%) highlight operational efficiency.
- Low debt-to-equity ratio (0.10) indicates financial stability.
- Quarterly profit growth (PAT up from 57.1 Cr. to 65.4 Cr.).
- Stock trading above both 50 DMA and 200 DMA shows strength.
Limitation
- High P/E (43.2) compared to industry average (22.9) suggests overvaluation.
- PEG ratio of 2.16 indicates growth is priced expensively.
- Dividend yield is low at 0.17%, limiting income support.
- Book value (111 ₹) far below current price (1,183 ₹), showing stretched valuation.
Company Negative News
- High valuation compared to industry peers.
- Low dividend yield may not attract income-focused investors.
Company Positive News
- Strong quarterly profit growth (25.8% increase).
- Stable institutional support (FII +0.02%, DII +0.57%).
- EPS at 26.8 ₹ supports earnings strength.
- 52-week performance shows 73.3% gain, reflecting strong investor interest.
Industry
- Industry P/E at 22.9 is much lower than INOX India’s 43.2, suggesting sector peers are more reasonably valued.
- Industrial gas and cryogenic equipment sector is growing, driven by infrastructure and energy demand.
Conclusion
✅ INOX India appears to be a moderately good candidate for swing trading, supported by strong fundamentals and bullish technical signals. However, high valuation poses a risk. Traders may enter around 1,160–1,180 ₹ with momentum confirmation and target exits near 1,250–1,280 ₹. If already holding, monitor closely and protect downside below 1,140 ₹.