JYOTHYLAB - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Jyothy Labs offers strong fundamentals and low debt, but weak momentum and technical resistance limit short-term upside.

🎯 Optimal Entry Price: ₹310–₹315

🚪 Exit Target (if already holding): ₹335–₹345

🔍 Positive

• 📈 ROCE of 37.1% and ROE of 29.0% reflect excellent capital efficiency.
• 📉 Debt-to-equity ratio of 0.04 indicates a strong balance sheet.
• 📈 P/E of 31.5 aligns with industry average (31.1), suggesting fair valuation.
• 📈 EPS of ₹9.97 supports earnings strength.
• 📈 PEG ratio of 0.82 implies reasonable valuation relative to growth.
• 📈 Quarterly PAT improved from ₹79.6 Cr to ₹96.8 Cr, showing operational consistency.

⚠️ Limitation

• 📉 Price below both 50 DMA and 200 DMA (₹321 and ₹351), confirming short-term weakness.
• 📉 MACD at -0.87 indicates bearish momentum.
• 📉 RSI at 46.5 is neutral, lacking strong directional bias.
• 📉 Volume below weekly average (1.38L vs 1.75L), showing reduced trader interest.
• 📉 FII holding declined by 0.55%, reflecting cautious foreign sentiment.

📉 Company Negative News

• 📉 FII outflows and weak technical indicators suggest limited short-term momentum.
• 📉 52-week Index at 20.5% shows minimal recovery from yearly highs.

📈 Company Positive News

• 📈 DII holding increased by 0.10%, indicating domestic institutional confidence.
• 📈 PAT growth and strong ROCE/ROE metrics support long-term fundamentals.

🧼 Industry

• 🧼 FMCG sector benefits from stable demand and brand loyalty across household categories.
• 📉 Margin pressures and rural demand fluctuations remain key risks.

✅ Conclusion

• 📉 Jyothy Labs is moderately suitable for swing trading due to strong fundamentals and technical support near ₹310.
• 🎯 Entry near ₹310–₹315 with exit around ₹335–₹345 is recommended for short-term traders.
• 📊 Long-term investors may consider accumulating on dips for consistent earnings and low leverage.

I can also compare Jyothy Labs with peers like Emami or Godrej Consumer to identify stronger swing setups in the FMCG space.