ITI - Swing Trade Analysis with AI Signals
Back to ListHere’s a structured swing trade analysis for ITI Ltd. based on the provided parameters
Swing Trade Rating: 2.7
| Stock Code | ITI | Market Cap | 29,969 Cr. | Current Price | 311 ₹ | High / Low | 373 ₹ |
| Book Value | 19.2 ₹ | Dividend Yield | 0.00 % | ROCE | 1.43 % | ROE | -9.13 % |
| Face Value | 10.0 ₹ | DMA 50 | 293 ₹ | DMA 200 | 294 ₹ | Chg in FII Hold | 0.00 % |
| Chg in DII Hold | 0.01 % | PAT Qtr | -83.7 Cr. | PAT Prev Qtr | -21.0 Cr. | RSI | 63.5 |
| MACD | 3.51 | Volume | 18,30,835 | Avg Vol 1Wk | 10,46,298 | Low price | 233 ₹ |
| High price | 373 ₹ | Debt to equity | 0.41 | 52w Index | 55.9 % | Qtr Profit Var | -24.4 % |
| EPS | 3.04 ₹ | Industry PE | 58.0 |
📊 ITI shows weak potential for swing trading. The stock is trading slightly above both its 50 DMA (293 ₹) and 200 DMA (294 ₹), indicating short-term strength but limited medium-term momentum. RSI at 63.5 suggests bullish bias, while MACD (3.51) confirms mild upward momentum. However, fundamentals are very poor: negative ROE (-9.13%), very low ROCE (1.43%), and consistent quarterly losses (PAT -83.7 Cr. vs -21 Cr.). EPS (3.04 ₹) is weak compared to industry peers, and book value (19.2 ₹) is far below the current price (311 ₹), showing overvaluation.
💡 Optimal Entry Price: Around 280–290 ₹ (near support zone).
📈 Exit Strategy (if already holding): Consider booking profits near 330–340 ₹ (resistance zone), with a strict stop-loss around 270 ₹.
Positive
- ✅ Stock trading above both 50 DMA and 200 DMA, showing short-term strength.
- ✅ Volume (18.3 lakh) higher than weekly average (10.4 lakh), indicating strong participation.
- ✅ Debt-to-equity ratio (0.41) is manageable.
- ✅ Slight increase in DII holdings (+0.01%).
Limitation
- ⚠️ Negative ROE (-9.13%) and very low ROCE (1.43%).
- ⚠️ Consistent quarterly losses (PAT -83.7 Cr.).
- ⚠️ Book value (19.2 ₹) far below current price (311 ₹), indicating overvaluation.
- ⚠️ Dividend yield is 0%, offering no income support.
Company Negative News
- ❌ Quarterly losses widened significantly (₹83.7 Cr. vs ₹21 Cr.).
- ❌ Weak fundamentals despite short-term technical signals.
Company Positive News
- ✅ No major positive news reported, but technical indicators show mild bullishness.
Industry
- 🏦 Industry P/E at 58 highlights ITI’s lack of profitability and overvaluation.
- 📉 Telecom and technology sector growth is strong, but ITI lags peers in efficiency.
Conclusion
🔎 ITI is a fundamentally weak stock with consistent losses and poor efficiency, making it a risky swing trade candidate. Optimal entry is near ₹280–290, with exit around ₹330–340. Traders should exercise caution and closely monitor technical signals before taking positions.
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