JWL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.3
| Stock Code | JWL | Market Cap | 13,231 Cr. | Current Price | 310 ₹ | High / Low | 457 ₹ |
| Stock P/E | 47.1 | Book Value | 65.8 ₹ | Dividend Yield | 0.32 % | ROCE | 21.5 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 310 ₹ | DMA 200 | 338 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.28 % | PAT Qtr | 52.7 Cr. | PAT Prev Qtr | 32.9 Cr. |
| RSI | 49.0 | MACD | 1.28 | Volume | 22,42,157 | Avg Vol 1Wk | 48,54,174 |
| Low price | 247 ₹ | High price | 457 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.21 |
| 52w Index | 29.8 % | Qtr Profit Var | -40.5 % | EPS | 6.61 ₹ | Industry PE | 50.8 |
📊 JWL presents a fair swing trade opportunity. The RSI at 49 suggests neutrality, while MACD at 1.28 indicates mild bullish momentum. The PEG ratio of 0.50 highlights undervaluation relative to growth, supported by strong ROCE (21.5%) and ROE (17%). However, the high P/E of 47.1 and quarterly profit variation (-40.5%) raise caution. Current price (310 ₹) sits exactly at the 50 DMA, but below the 200 DMA (338 ₹), showing short-term consolidation with medium-term resistance.
✅ Optimal Entry Price: 300–305 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Target 340–350 ₹ (near 200 DMA resistance). Trail stop-loss around 295 ₹ to protect downside.
Positive
- 📈 Strong ROCE (21.5%) and ROE (17%) reflect efficient capital deployment.
- 💹 PEG ratio of 0.50 indicates undervaluation relative to growth prospects.
- 📊 PAT improved from 32.9 Cr. to 52.7 Cr. in the latest quarter.
- 🔒 Low debt-to-equity (0.21) ensures financial stability.
Limitation
- ⚠️ High P/E (47.1) compared to book value (65.8 ₹) suggests stretched valuation.
- 📉 Quarterly profit variation (-40.5%) raises concerns about earnings consistency.
- 📉 Current price below 200 DMA indicates medium-term weakness.
- 📉 Trading volume (22.4L) is lower than 1-week average (48.5L), showing reduced momentum.
Company Negative News
- 📉 Decline in DII holding (-0.28%) signals reduced domestic institutional confidence.
- ⚠️ Volatility in quarterly profits may affect investor sentiment.
Company Positive News
- 📈 Increase in FII holding (+0.06%) reflects foreign investor interest.
- 💹 PAT growth quarter-on-quarter supports near-term optimism.
Industry
- 🏭 Industry P/E at 50.8 is slightly higher than JWL’s 47.1, suggesting sector-wide premium valuations.
- 📊 Sector momentum remains strong with 52-week index gain of 29.8%.
Conclusion
🔎 JWL earns a swing trade rating of 4.3. Entry near 300–305 ₹ provides margin of safety, while exit around 340–350 ₹ aligns with resistance levels. Strong fundamentals and PEG ratio support the trade, but profit volatility and valuation risks require cautious position sizing and disciplined stop-loss management.