ITCHOTELS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | ITCHOTELS | Market Cap | 33,917 Cr. | Current Price | 163 ₹ | High / Low | 262 ₹ |
| Stock P/E | 39.8 | Book Value | 54.6 ₹ | Dividend Yield | 0.00 % | ROCE | 9.74 % |
| ROE | 7.04 % | Face Value | 1.00 ₹ | DMA 50 | 163 ₹ | DMA 200 | 186 ₹ |
| Chg in FII Hold | -1.52 % | Chg in DII Hold | 0.33 % | PAT Qtr | 286 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 55.5 | MACD | 0.90 | Volume | 38,92,983 | Avg Vol 1Wk | 41,03,763 |
| Low price | 137 ₹ | High price | 262 ₹ | Debt to equity | 0.01 | 52w Index | 20.5 % |
| Qtr Profit Var | 25.4 % | EPS | 3.90 ₹ | Industry PE | 29.6 |
Analysis: ITC Hotels is trading at ₹163, exactly at its 50 DMA (₹163) but below the 200 DMA (₹186), indicating mild bearish pressure. RSI at 55.5 shows neutral momentum, while MACD at 0.90 suggests a slight positive crossover. Valuation is expensive with a P/E of 39.8 compared to industry average of 29.6, and EPS of ₹3.90 is modest. ROCE (9.74%) and ROE (7.04%) are moderate, limiting efficiency. Debt-to-equity ratio is very low (0.01), showing strong financial stability. PAT improved significantly (₹286 Cr vs ₹152 Cr), with quarterly profit variation (+25.4%) supporting earnings momentum. Swing trade potential exists but with caution due to high valuation and weak efficiency metrics.
Optimal Entry Price: ₹158–160, near short-term support.
Exit Strategy (if holding): Consider exiting around ₹175–180, aligning with resistance near 200 DMA.
✅ Positive
- Debt-free structure (Debt-to-equity 0.01).
- PAT growth (₹286 Cr vs ₹152 Cr) shows strong earnings momentum.
- DII holdings increased (+0.33%), showing domestic investor confidence.
⚠️ Limitation
- High P/E (39.8) compared to industry average (29.6).
- ROCE (9.74%) and ROE (7.04%) are modest.
- Dividend yield at 0% reduces investor appeal.
📉 Company Negative News
- FII holdings decreased significantly (-1.52%).
- Trading below 200 DMA (₹186), showing resistance overhead.
📈 Company Positive News
- PAT surged by 25.4% quarter-on-quarter.
- DII holdings increased, supporting stability.
🏭 Industry
- Industry P/E at 29.6, showing ITC Hotels trades at a premium.
- Hospitality sector remains cyclical but benefits from rising demand post-recovery.
🔎 Conclusion
ITC Hotels offers moderate swing trade potential with strong earnings growth and debt-free balance sheet. Entry near ₹158–160 may be considered, with exit around ₹175–180. High valuation and weak efficiency metrics suggest caution for longer-term positions.