PATANJALI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | PATANJALI | Market Cap | 54,933 Cr. | Current Price | 506 ₹ | High / Low | 671 ₹ |
| Stock P/E | 38.5 | Book Value | 111 ₹ | Dividend Yield | 0.66 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 538 ₹ | DMA 200 | 569 ₹ |
| Chg in FII Hold | -1.42 % | Chg in DII Hold | 1.19 % | PAT Qtr | 517 Cr. | PAT Prev Qtr | 180 Cr. |
| RSI | 38.1 | MACD | -14.2 | Volume | 20,76,960 | Avg Vol 1Wk | 32,48,197 |
| Low price | 480 ₹ | High price | 671 ₹ | PEG Ratio | 2.22 | Debt to equity | 0.24 |
| 52w Index | 13.4 % | Qtr Profit Var | 67.2 % | EPS | 13.1 ₹ | Industry PE | 23.2 |
📊 PATANJALI shows moderate fundamentals with weak technicals, making it a cautious candidate for swing trading. The stock is currently at ₹506, trading below both its 50 DMA (₹538) and 200 DMA (₹569), reflecting bearish sentiment. RSI at 38.1 indicates oversold conditions, while MACD at -14.2 confirms downward momentum. Despite this, strong quarterly PAT growth and decent ROCE/ROE provide support. Optimal entry would be in the ₹490–₹500 range. If already holding, exit near ₹560–₹570, where resistance from the 200 DMA is expected.
✅ Positive
- Quarterly PAT surged from ₹180 Cr. to ₹517 Cr. (+67.2%).
- ROCE (15.6%) and ROE (12.1%) show healthy capital efficiency.
- EPS of ₹13.1 supports valuation strength.
- DII holdings increased (+1.19%), showing domestic institutional support.
- Debt-to-equity ratio at 0.24 indicates manageable leverage.
⚠️ Limitation
- P/E of 38.5 compared to industry PE of 23.2 suggests overvaluation.
- PEG ratio of 2.22 indicates expensive valuation relative to growth.
- Dividend yield of 0.66% offers limited income return.
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- Volume below weekly average indicates reduced participation.
📉 Company Negative News
- FII holdings decreased (-1.42%), showing reduced foreign investor confidence.
- MACD negative (-14.2), confirming bearish momentum.
- 52-week index at 13.4% highlights underperformance relative to peers.
📈 Company Positive News
- Strong quarterly PAT growth indicates operational improvement.
- DII inflows (+1.19%) reflect confidence from domestic institutions.
- EPS growth supports valuation despite high P/E.
🏭 Industry
- Industry PE at 23.2 is lower than PATANJALI’s 38.5, suggesting overvaluation.
- FMCG sector remains competitive but supported by rising consumer demand.
🔎 Conclusion
PATANJALI is a moderate swing candidate with improving earnings but weak technicals and valuation concerns. Entry near ₹490–₹500 offers margin of safety. Exit around ₹560–₹570 is advisable if already holding, as resistance is expected near the 200 DMA. Risk management is essential due to bearish momentum and overvaluation relative to industry peers.