ITCHOTELS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | ITCHOTELS | Market Cap | 38,733 Cr. | Current Price | 186 ₹ | High / Low | 262 ₹ |
| Stock P/E | 45.5 | Book Value | 54.6 ₹ | Dividend Yield | 0.00 % | ROCE | 9.74 % |
| ROE | 7.04 % | Face Value | 1.00 ₹ | DMA 50 | 194 ₹ | DMA 200 | 205 ₹ |
| Chg in FII Hold | -9.39 % | Chg in DII Hold | 0.92 % | PAT Qtr | 286 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 46.8 | MACD | -3.48 | Volume | 15,52,704 | Avg Vol 1Wk | 35,85,948 |
| Low price | 158 ₹ | High price | 262 ₹ | Debt to equity | 0.01 | 52w Index | 26.8 % |
| Qtr Profit Var | 25.4 % | EPS | 3.90 ₹ | Industry PE | 31.0 |
📊 ITC Hotels shows moderate potential for swing trading. The stock is priced at ₹186, below both its 50 DMA (₹194) and 200 DMA (₹205), indicating short-term weakness. Technical indicators (RSI 46.8, MACD negative) suggest bearish momentum. Strong quarterly profit growth and negligible debt provide stability, but high P/E and weak ROE/ROCE limit attractiveness. Heavy FII outflows also weigh on sentiment.
💡 Optimal Entry Price: Around ₹178–182 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹200–205 resistance levels, or maintain a stop-loss around ₹175.
✅ Positive
- Debt-to-equity ratio of 0.01 shows negligible leverage risk.
- Quarterly PAT improved from ₹152 Cr. to ₹286 Cr. (+25.4%).
- DII holdings increased (+0.92%), showing domestic institutional support.
- EPS of ₹3.90 reflects steady earnings generation.
⚠️ Limitation
- P/E of 45.5 is significantly higher than industry average of 31.0, suggesting overvaluation.
- ROE (7.04%) and ROCE (9.74%) are relatively weak, showing limited efficiency.
- Dividend yield is 0%, offering no income support.
- Stock trading below both 50 DMA and 200 DMA signals weakness.
📉 Company Negative News
- FII holdings decreased sharply (-9.39%), reflecting reduced foreign investor confidence.
- MACD at -3.48 shows bearish crossover momentum.
- Trading volume (15.5 lakh) is below weekly average, indicating reduced participation.
📈 Company Positive News
- Quarterly profit growth (+25.4%) supports near-term optimism.
- DII inflows (+0.92%) show domestic institutional confidence.
- Negligible debt provides financial stability.
🏦 Industry
- Industry P/E at 31.0 is lower than ITC Hotels’ 45.5, suggesting relative overvaluation.
- Hospitality sector benefits from rising travel demand and tourism recovery, but remains cyclical.
🔎 Conclusion
ITC Hotels earns a swing trade rating of 3.5. Entry near ₹178–182 offers a safer risk-reward setup, while profit booking should be considered near ₹200–205. Traders should remain cautious due to weak technicals, high valuation, and FII outflows, but strong quarterly profit growth and negligible debt provide limited upside opportunities.