ITC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ITC | Market Cap | 3,73,371 Cr. | Current Price | 298 ₹ | High / Low | 444 ₹ |
| Stock P/E | 18.5 | Book Value | 54.7 ₹ | Dividend Yield | 4.82 % | ROCE | 36.9 % |
| ROE | 27.9 % | Face Value | 1.00 ₹ | DMA 50 | 326 ₹ | DMA 200 | 374 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 1.49 % | PAT Qtr | 5,297 Cr. | PAT Prev Qtr | 5,113 Cr. |
| RSI | 32.5 | MACD | -6.44 | Volume | 1,90,45,881 | Avg Vol 1Wk | 2,59,61,036 |
| Low price | 297 ₹ | High price | 444 ₹ | PEG Ratio | 2.01 | Debt to equity | 0.00 |
| 52w Index | 0.61 % | Qtr Profit Var | 5.59 % | EPS | 27.8 ₹ | Industry PE | 42.0 |
📊 ITC stock shows moderate potential for swing trading. The RSI at 32.5 indicates oversold conditions, while the MACD (-6.44) confirms bearish sentiment. The price is trading below both the 50 DMA (326 ₹) and 200 DMA (374 ₹), reflecting a downtrend. Fundamentally, ITC remains strong with high ROCE (36.9%) and ROE (27.9%), zero debt, and a strong dividend yield (4.82%). Quarterly profits have grown slightly (PAT up from 5,113 Cr. to 5,297 Cr.), but valuation looks stretched with a PEG ratio of 2.01. However, the P/E (18.5) is still below the industry average (42.0), suggesting relative undervaluation compared to peers.
💡 Optimal Entry Price: Around 295–305 ₹, near current levels, with confirmation of reversal signals.
🚪 Exit Strategy (if already holding): Consider exiting near 330–340 ₹ if a rebound occurs, or cut losses if the price falls below 290 ₹ with strong volume.
Positive
- Strong ROCE (36.9%) and ROE (27.9%) highlight operational efficiency.
- Zero debt-to-equity ratio ensures financial stability.
- Dividend yield of 4.82% provides consistent income support.
- Quarterly profit growth (PAT up 5.59%).
Limitation
- Price trading below 50 DMA and 200 DMA confirms bearish trend.
- PEG ratio of 2.01 indicates growth is priced expensively.
- FII holdings decreased (-1.28%), showing reduced foreign confidence.
- 52-week index gain is minimal (0.61%), showing limited momentum.
Company Negative News
- FII outflows (-1.28%) indicate weakening foreign investor sentiment.
- Weak technical indicators (RSI, MACD) suggest continued selling pressure.
Company Positive News
- Quarterly profit growth (PAT up from 5,113 Cr. to 5,297 Cr.).
- DII inflows (+1.49%) show domestic investor confidence.
- EPS at 27.8 ₹ supports earnings strength.
- Strong dividend yield attracts long-term investors.
Industry
- Industry P/E at 42.0 is much higher than ITC’s 18.5, suggesting ITC is undervalued relative to peers.
- FMCG and tobacco sector remains resilient but cyclical, influenced by consumer demand and regulatory changes.
Conclusion
✅ ITC is a moderately good candidate for swing trading, supported by strong fundamentals, high dividend yield, and undervaluation compared to industry peers. However, weak technicals and FII outflows limit short-term upside. Traders may enter around 295–305 ₹ with momentum confirmation and target exits near 330–340 ₹. If already holding, monitor closely and protect downside below 290 ₹.