JYOTHYLAB - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.2

🧼 Swing Trade Analysis: JYOTHYLAB

Jyothy Labs shows strong fundamentals but is currently under technical pressure, making it a cautious swing trade candidate with potential for a rebound if momentum improves.

✅ Strengths

Profitability: ROCE (37.1%) and ROE (29.0%) are excellent — strong operational efficiency.

Valuation: P/E of 32.4 is in line with industry average (33.2), and PEG ratio of 0.84 suggests reasonable growth-adjusted pricing.

Debt-to-Equity: Very low at 0.04 — strong balance sheet.

Dividend Yield: 1.08% — adds holding incentive.

Earnings Stability: PAT ₹96.8 Cr vs ₹79.6 Cr — decent performance despite slight quarterly decline.

⚠️ Weaknesses

Technical Setup: Price ₹325 is below both 50-DMA (₹335) and 200-DMA (₹364), indicating a bearish trend.

RSI (37.6): Near oversold — signals weakness but potential for reversal.

MACD (-3.47): Negative — confirms downward momentum.

Volume: Slightly below weekly average — reduced short-term interest.

Institutional Sentiment: FII (-0.47%) and DII (-0.27%) holdings declined — mildly bearish.

52w Index (18.6%): Trading near the lower end of its yearly range — sentiment remains weak.

🎯 Optimal Entry Price

Buy Zone: ₹310–₹320

Near recent support; wait for MACD to flatten and RSI to rise above 45 before entering.

🚪 Exit Strategy (If Holding)

Target Exit: ₹355–₹365

Near 200-DMA resistance; exit if RSI approaches 65 or MACD turns positive.

Stop Loss: ₹295

Below this level, downside risk increases.

⚖️ Verdict

JYOTHYLAB is a moderate swing trade candidate, best suited for traders who can time a reversal near support. Fundamentals are strong, but technical indicators need improvement before a confident entry.

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