OIL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | OIL | Market Cap | 77,663 Cr. | Current Price | 477 ₹ | High / Low | 524 ₹ |
| Stock P/E | 18.2 | Book Value | 298 ₹ | Dividend Yield | 2.41 % | ROCE | 15.2 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 466 ₹ | DMA 200 | 441 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.23 % | PAT Qtr | 808 Cr. | PAT Prev Qtr | 1,044 Cr. |
| RSI | 51.9 | MACD | 0.82 | Volume | 80,81,173 | Avg Vol 1Wk | 46,45,000 |
| Low price | 322 ₹ | High price | 524 ₹ | PEG Ratio | 1.14 | Debt to equity | 0.28 |
| 52w Index | 76.7 % | Qtr Profit Var | -33.8 % | EPS | 26.2 ₹ | Industry PE | 23.6 |
📊 OIL shows decent potential for swing trading. The fundamentals are solid with ROCE 15.2%, ROE 13.5%, and a moderate debt-to-equity ratio of 0.28. Valuation is fair (P/E 18.2 vs industry 23.6), and dividend yield at 2.41% adds investor appeal. Technicals are neutral to slightly positive (RSI 51.9, MACD positive, price above both 50 DMA and 200 DMA). The optimal entry price would be near ₹465–₹470, close to the 50 DMA support. If already holding, consider exiting around ₹500–₹510, near resistance levels and recent highs.
✅ Positive
- Strong fundamentals: ROCE 15.2% and ROE 13.5% indicate efficient capital use.
- Valuation attractive compared to industry peers (P/E 18.2 vs 23.6).
- Dividend yield of 2.41% provides steady income.
- Price trading above both 50 DMA and 200 DMA, showing technical strength.
- DII holdings increased (+0.23%), reflecting domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined from ₹1,044 Cr. to ₹808 Cr. (-33.8%).
- FII holdings slightly decreased (-0.02%), showing reduced foreign investor interest.
- PEG ratio at 1.14 suggests moderate growth prospects.
📉 Company Negative News
- Significant quarterly profit decline raises concerns about earnings stability.
- Global oil price volatility could impact near-term performance.
📈 Company Positive News
- Strong fundamentals with consistent earnings and low leverage.
- Dividend yield supports investor confidence.
- Technical indicators show neutral-to-positive momentum.
🏭 Industry
- Industry P/E at 23.6 is higher than OIL’s 18.2, suggesting OIL is undervalued.
- Oil & gas sector benefits from global energy demand but remains cyclical and commodity-driven.
📝 Conclusion
OIL is a moderately strong swing trade candidate with solid fundamentals and fair valuation. Entry is advisable near ₹465–₹470, with exit around ₹500–₹510 if already holding. Long-term investors may benefit from its dividend yield and strong ROCE/ROE, while short-term traders should monitor earnings trends and global oil price movements for momentum shifts.