ITCHOTELS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | ITCHOTELS | Market Cap | 31,733 Cr. | Current Price | 153 ₹ | High / Low | 262 ₹ |
| Stock P/E | 37.3 | Book Value | 54.6 ₹ | Dividend Yield | 0.00 % | ROCE | 9.74 % |
| ROE | 7.04 % | Face Value | 1.00 ₹ | DMA 50 | 176 ₹ | DMA 200 | 196 ₹ |
| Chg in FII Hold | -9.39 % | Chg in DII Hold | 0.92 % | PAT Qtr | 286 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 32.0 | MACD | -7.60 | Volume | 49,96,520 | Avg Vol 1Wk | 76,59,948 |
| Low price | 146 ₹ | High price | 262 ₹ | Debt to equity | 0.01 | 52w Index | 5.59 % |
| Qtr Profit Var | 25.4 % | EPS | 3.90 ₹ | Industry PE | 27.8 |
📊 ITC Hotels stock currently shows weak technical momentum for swing trading. The RSI at 32.0 indicates oversold conditions, while the MACD (-7.60) confirms bearish sentiment. The price is trading well below both the 50 DMA (176 ₹) and 200 DMA (196 ₹), reflecting a strong downtrend. Fundamentally, the company has shown profit growth (PAT up from 152 Cr. to 286 Cr.), but the high P/E (37.3 vs industry 27.8) and low ROE (7.04%) make it less attractive. FII holdings have dropped significantly (-9.39%), signaling reduced foreign investor confidence, though DII holdings increased slightly (+0.92%).
💡 Optimal Entry Price: Around 150–155 ₹, near current levels, but only if reversal signals appear with volume support.
🚪 Exit Strategy (if already holding): Consider exiting near 170–175 ₹ if a rebound occurs, or cut losses if the price falls below 145 ₹ with strong volume.
Positive
- Quarterly profit growth (PAT up 25.4%).
- Low debt-to-equity ratio (0.01) indicates financial stability.
- DII holdings increased (+0.92%), showing domestic investor support.
- Dividend yield of 2.13% provides income cushion.
Limitation
- High P/E (37.3) compared to industry average (27.8).
- Price trading well below 50 DMA and 200 DMA confirms bearish trend.
- ROE (7.04%) and ROCE (9.74%) remain weak compared to peers.
- Dividend yield is negligible at 0.00%, limiting income support.
Company Negative News
- FII holdings decreased sharply (-9.39%), showing reduced foreign confidence.
- Weak technical indicators (RSI, MACD) suggest continued selling pressure.
Company Positive News
- Quarterly profit growth (PAT up from 152 Cr. to 286 Cr.).
- DII inflows (+0.92%) show domestic investor confidence.
- EPS at 3.90 ₹ supports earnings visibility.
Industry
- Industry P/E at 27.8 is lower than ITC Hotels’ 37.3, suggesting sector peers are more reasonably valued.
- Hospitality sector remains cyclical, influenced by tourism demand and seasonal trends.
Conclusion
⚠️ ITC Hotels is currently not an ideal candidate for swing trading due to weak technicals and high valuation relative to peers. While profit growth and low debt are positives, the bearish trend and sharp FII outflows make it risky. Traders should wait for reversal signals before entering. If already holding, exit on rebounds near 170–175 ₹ and protect downside below 145 ₹.