PATANJALI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | PATANJALI | Market Cap | 51,572 Cr. | Current Price | 474 ₹ | High / Low | 671 ₹ |
| Stock P/E | 30.7 | Book Value | 111 ₹ | Dividend Yield | 0.70 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 515 ₹ | DMA 200 | 553 ₹ |
| Chg in FII Hold | -1.42 % | Chg in DII Hold | 1.19 % | PAT Qtr | 624 Cr. | PAT Prev Qtr | 517 Cr. |
| RSI | 30.4 | MACD | -10.7 | Volume | 9,99,903 | Avg Vol 1Wk | 14,63,616 |
| Low price | 472 ₹ | High price | 671 ₹ | PEG Ratio | 1.77 | Debt to equity | 0.24 |
| 52w Index | 1.13 % | Qtr Profit Var | 68.2 % | EPS | 15.2 ₹ | Industry PE | 21.1 |
📊 PATANJALI shows moderate potential for swing trading. Fundamentals are decent with ROCE 15.6%, ROE 12.1%, and EPS of ₹15.2, while valuation is slightly stretched (P/E 30.7 vs industry 21.1). Dividend yield at 0.70% adds some investor appeal. Technical indicators, however, are weak: RSI at 30.4 is oversold, MACD is negative, and the stock trades below both 50 DMA and 200 DMA. The optimal entry price would be near ₹470–₹475, close to support levels. If already holding, consider exiting around ₹510–₹520, where resistance from the 50 DMA is expected.
✅ Positive
- ROCE 15.6% and ROE 12.1% show moderate capital efficiency.
- EPS at ₹15.2 indicates consistent earnings.
- DII holdings increased (+1.19%), showing domestic institutional support.
- Dividend yield of 0.70% provides passive income.
- Quarterly PAT improved from ₹517 Cr. to ₹624 Cr. (+68.2%).
⚠️ Limitation
- P/E (30.7) is higher than industry average (21.1), suggesting overvaluation.
- Stock trading below both 50 DMA (₹515) and 200 DMA (₹553), signaling bearish trend.
- FII holdings decreased (-1.42%), showing reduced foreign investor confidence.
- PEG ratio at 1.77 suggests moderate growth prospects relative to valuation.
📉 Company Negative News
- RSI oversold (30.4), indicating weak momentum.
- MACD negative (-10.7), suggesting downward pressure.
- Stock has fallen significantly from its 52-week high of ₹671.
📈 Company Positive News
- Quarterly PAT growth shows strong operational improvement.
- DII inflows provide institutional backing.
- Dividend yield supports investor confidence.
🏭 Industry
- Industry P/E at 21.1 is lower than PATANJALI’s 30.7, suggesting peers may be better valued.
- FMCG and consumer goods industry has long-term growth potential, driven by rising demand for health and wellness products.
📝 Conclusion
PATANJALI is a moderately good swing trade candidate with improving profitability but weak technicals and stretched valuation. Entry is advisable near ₹470–₹475, with exit around ₹510–₹520 if already holding. Long-term investors may benefit from its growth in FMCG demand, while short-term traders should wait for technical confirmation before aggressive positioning.