JSWINFRA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | JSWINFRA | Market Cap | 55,976 Cr. | Current Price | 266 ₹ | High / Low | 349 ₹ |
| Stock P/E | 180 | Book Value | 24.7 ₹ | Dividend Yield | 0.30 % | ROCE | 9.32 % |
| ROE | 6.93 % | Face Value | 2.00 ₹ | DMA 50 | 272 ₹ | DMA 200 | 288 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.37 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 49.4 | MACD | -3.55 | Volume | 28,46,774 | Avg Vol 1Wk | 15,77,862 |
| Low price | 218 ₹ | High price | 349 ₹ | PEG Ratio | 5.14 | Debt to equity | 0.71 |
| 52w Index | 36.9 % | Qtr Profit Var | -63.8 % | EPS | 1.47 ₹ | Industry PE | 24.9 |
📊 JSW Infrastructure (JSWINFRA) shows weak fundamentals with very high valuations (P/E 180 vs. industry 24.9), low ROCE (9.32%) and ROE (6.93%), and declining profitability. Technically, the stock is trading below both 50 DMA (272 ₹) and 200 DMA (288 ₹), with RSI at 49.4 indicating neutral momentum and MACD at -3.55 showing bearish pressure. While trading volumes are strong, the sharp drop in quarterly profits raises caution. Overall, it is a risky candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 260 ₹ – 265 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 275 ₹ – 285 ₹ (resistance at DMA levels) or place a stop-loss below 255 ₹.
✅ Positive
- Strong trading volume (28.4 lakh vs. 15.7 lakh average) indicates active investor interest.
- Dividend yield of 0.30% provides minimal but steady returns.
- Stock trading near support levels offers potential for short-term rebound.
⚠️ Limitation
- Extremely high P/E ratio (180) compared to industry average (24.9) indicates severe overvaluation.
- Low ROCE (9.32%) and ROE (6.93%) reflect poor capital efficiency.
- MACD at -3.55 signals bearish momentum.
- PEG ratio of 5.14 suggests valuation pressure relative to growth.
📉 Company Negative News
- Quarterly PAT dropped sharply from 119 Cr. to 33.7 Cr. (-63.8%).
- Decline in FII holding (-0.17%) and DII holding (-0.37%) shows reduced institutional confidence.
- Stock trading significantly below 52-week high (349 ₹), reflecting weakness.
📈 Company Positive News
- EPS of 1.47 ₹ provides minimal earnings visibility.
- Stock trading near support zone may attract short-term speculative buying.
🏭 Industry
- Industry PE at 24.9 vs. JSWINFRA PE at 180 suggests extreme overvaluation compared to peers.
- Infrastructure sector benefits from government spending, but company-specific fundamentals remain weak.
🔎 Conclusion
JSW Infrastructure is fundamentally weak with stretched valuations and declining profits, though strong trading volumes provide some cushion. Swing traders may enter near 260 ₹ – 265 ₹ with a target around 275 ₹ – 285 ₹. Stop-loss below 255 ₹ is recommended. The stock offers limited swing trade potential with a rating of 3.1.