PATANJALI - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | PATANJALI | Market Cap | 49,612 Cr. | Current Price | 456 ₹ | High / Low | 654 ₹ |
| Stock P/E | 29.5 | Book Value | 111 ₹ | Dividend Yield | 0.77 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 483 ₹ | DMA 200 | 533 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | -0.98 % | PAT Qtr | 624 Cr. | PAT Prev Qtr | 517 Cr. |
| RSI | 39.6 | MACD | -5.86 | Volume | 22,06,557 | Avg Vol 1Wk | 21,29,362 |
| Low price | 451 ₹ | High price | 654 ₹ | PEG Ratio | 1.70 | Debt to equity | 0.24 |
| 52w Index | 2.78 % | Qtr Profit Var | 68.2 % | EPS | 15.2 ₹ | Industry PE | 21.7 |
PATANJALI shows moderate potential for swing trading. The stock is currently trading below both its 50 DMA (₹483) and 200 DMA (₹533), indicating short-term weakness. RSI at 39.6 suggests oversold conditions, which may lead to a technical rebound. However, MACD is negative (-5.86), signaling bearish undertones. The optimal entry price would be around ₹450–₹460, near the support zone. If already holding, consider exiting near ₹500–₹520, below the recent high of ₹654, to secure gains before resistance.
✅ Positive
- Quarterly profit growth (PAT rose from ₹517 Cr. to ₹624 Cr.).
- Healthy ROCE (15.6%) and ROE (12.1%).
- EPS of ₹15.2 indicates earnings visibility.
- Low debt-to-equity ratio (0.24), showing financial stability.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, reflecting weakness.
- FII holdings decreased (-1.62%) and DII holdings also declined (-0.98%).
- Dividend yield is modest at 0.77%.
- PEG ratio of 1.70 suggests valuation is not cheap relative to growth.
📰 Company Negative News
- Stock corrected sharply from its 52-week high of ₹654.
- Weak technical indicators (negative MACD, below DMA levels).
🌟 Company Positive News
- Strong quarterly profit growth (+68.2% variation).
- Solid return ratios highlight efficient capital usage.
🏭 Industry
- Industry P/E is 21.7, while PATANJALI trades at 29.5, showing premium valuation.
- Sector outlook remains positive, but investor sentiment is cautious.
📌 Conclusion
PATANJALI is a cautious candidate for swing trading. Entry near ₹450–₹460 offers a favorable risk-reward setup, while exit should be considered around ₹500–₹520. Traders may benefit from a rebound due to oversold RSI, but weak technical signals and reduced institutional interest suggest limited upside potential.