PATANJALI - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📈 Positive

• 📊 Strong quarterly profit growth: PAT rose from ₹180 Cr. to ₹517 Cr. (67.2% variation).
• 📈 EPS of ₹13.1 and P/E of 43.9 vs industry P/E of 25.9 suggests moderate valuation premium.
• 📘 Book value of ₹111 ₹ and low debt-to-equity ratio of 0.24 reflect financial stability.
• 📈 ROCE of 15.6% and ROE of 12.1% indicate decent capital efficiency.
• 📈 DII holding increased by 0.63%, showing domestic institutional confidence.

⚠️ Limitation

• 📉 RSI at 40.2 and MACD at -1.57 suggest weak momentum and possible consolidation.
• 📉 Price below both DMA 50 (₹594) and DMA 200 (₹591) confirms short-term technical weakness.
• 📉 FII holding declined by 0.75%, indicating cautious foreign sentiment.
• 📉 PEG ratio of 2.53 implies overvaluation relative to growth.
• 📉 Volume (12.7 lakh) significantly below 1-week average (29.8 lakh) shows reduced participation.

🚫 Company Negative News

• 📉 No major negative news reported, but valuation and technical weakness are key concerns.

✅ Company Positive News

• 🌿 PATANJALI continues to expand its FMCG and wellness portfolio, benefiting from strong brand equity and rural penetration.
• 📈 Strong quarterly earnings and low debt profile support investor confidence.

🏦 Industry

• 🧴 Operates in the FMCG and wellness sector, which benefits from rising health awareness and consumption trends.
• 📊 Industry P/E of 25.9 reflects stable growth expectations.

🧾 Conclusion

• 📉 PATANJALI is fundamentally strong with improving earnings, but faces short-term technical weakness and valuation caution.
• 📍 Optimal entry: ₹560–₹570 (near support zone and below DMA levels).
• 🚪 Exit if held: ₹595–₹610 (near DMA 50 and 200) unless momentum improves.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of volume and trend reversal signals.

I can also chart PATANJALI’s RSI and MACD trends to help visualize entry and exit zones.