PEL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: Piramal Enterprises Ltd. (PEL)

Swing Trade Rating: 3.5

🚀 Technical Strength

Momentum Indicators

RSI at 63.0: Bullish, but approaching overbought territory — shows strength but caution needed.

MACD at 41.1: Positive and rising — reflects ongoing upward momentum.

Trading Above Key Averages

Current Price (₹1,295) is well above 50 DMA (₹1,189) and 200 DMA (₹1,077) — confirms an uptrend.

Recent High of ₹1,352: Stock is nearing its 52-week high, offering breakout potential.

📉 Fundamental Concerns

Valuation Flags

P/E of 56.5 vs Industry average of 25.2: Stock is richly valued.

PEG Ratio of −1.50: Negative PEG indicates valuation misalignment with expected growth.

Low Returns

ROCE (6.78%) and ROE (1.63%) — relatively weak return metrics.

Debt Load

Debt to Equity at 2.42: High leverage increases risk, especially in volatile swings.

📈 Positives Worth Noting

Quarterly PAT Surge

PAT up from ₹102 Cr. to ₹276 Cr. — 52.3% quarterly growth is substantial.

EPS of ₹25.7: Decent earnings base.

DII Holding Increase (+0.86%): Indicates domestic institutional confidence.

🎯 Optimal Entry Price

Entry Zone: ₹1,260–₹1,280

Enter on minor pullback for better risk-adjusted return.

Wait for RSI holding steady in the 60–65 range and volume revival.

🚪 Exit Strategy (If Already Holding)

Target Range: ₹1,340–₹1,350

Near recent high, likely resistance area.

Stop-Loss: ₹1,220

Below 50 DMA to protect against trend reversal.

PEL has shown strong price action recently, but fundamental concerns and valuation premiums temper its swing appeal. It's suitable for short-term momentum trades with strict discipline. Want to see how it stacks up against another financial sector stock or visualize this setup in a chart? I’ve got tools for that. 📈🔍

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