IRB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | IRB | Market Cap | 25,388 Cr. | Current Price | 42.0 ₹ | High / Low | 55.2 ₹ |
| Stock P/E | 28.1 | Book Value | 25.2 ₹ | Dividend Yield | 0.71 % | ROCE | 7.21 % |
| ROE | 8.13 % | Face Value | 1.00 ₹ | DMA 50 | 41.7 ₹ | DMA 200 | 44.8 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.39 % | PAT Qtr | 188 Cr. | PAT Prev Qtr | 140 Cr. |
| RSI | 55.1 | MACD | -0.14 | Volume | 57,90,074 | Avg Vol 1Wk | 85,79,413 |
| Low price | 38.6 ₹ | High price | 55.2 ₹ | PEG Ratio | 0.61 | Debt to equity | 0.78 |
| 52w Index | 20.9 % | Qtr Profit Var | 17.8 % | EPS | 9.34 ₹ | Industry PE | 17.4 |
📊 IRB shows moderate potential for swing trading. The stock is priced at ₹42.0, close to its 50 DMA (₹41.7) but below its 200 DMA (₹44.8), suggesting short-term support but medium-term weakness. Technical indicators (RSI 55.1, MACD slightly negative) point to consolidation. While quarterly profits improved, high valuation compared to industry PE and weak ROCE/ROE limit upside.
💡 Optimal Entry Price: Around ₹40–41 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹48–50 resistance levels, or maintain a stop-loss around ₹39.
✅ Positive
- Quarterly PAT increased from ₹140 Cr. to ₹188 Cr. (+17.8%).
- PEG ratio of 0.61 suggests reasonable valuation relative to growth.
- Debt-to-equity ratio of 0.78 indicates manageable leverage.
- EPS of ₹9.34 shows consistent earnings generation.
⚠️ Limitation
- P/E of 28.1 is higher than industry average of 17.4, indicating overvaluation.
- ROCE (7.21%) and ROE (8.13%) are relatively weak, showing limited efficiency.
- Stock trading below 200 DMA reflects medium-term weakness.
- Volume (57.9 lakh) is lower than weekly average, showing reduced participation.
📉 Company Negative News
- FII holdings decreased (-0.08%), reflecting reduced foreign investor confidence.
- MACD at -0.14 shows bearish crossover momentum.
- Stock trading far below 52-week high (₹55.2), limiting bullish sentiment.
📈 Company Positive News
- Quarterly profit growth (+17.8%) supports near-term optimism.
- DII holdings increased (+0.39%), showing domestic institutional support.
- Dividend yield of 0.71% provides modest shareholder returns.
🏦 Industry
- Industry P/E at 17.4 is lower than IRB’s 28.1, suggesting relative overvaluation.
- Infrastructure sector benefits from government spending and road development projects.
🔎 Conclusion
IRB earns a swing trade rating of 3.6. Entry near ₹40–41 offers a safer risk-reward setup, while profit booking should be considered near ₹48–50. Traders should remain cautious due to high valuation and weak efficiency metrics, but improving profits and sector support provide limited upside opportunities.