PEL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📈 Positive

• 📘 EPS of ₹19.4 and book value of ₹974 ₹ suggest decent intrinsic value support.
• 📈 Price is trading above DMA 200 (₹1,096), indicating medium-term support.
• 📈 DII holding increased by 0.86%, reflecting growing domestic institutional interest.
• 📉 Debt-to-equity ratio of 0.38 is moderate and manageable.
• 📈 PAT turned positive at ₹162 Cr. from a loss of ₹23.3 Cr. in the previous quarter.

⚠️ Limitation

• 📉 RSI at 48.4 and MACD at -6.85 suggest neutral to slightly bearish momentum.
• 📉 Price is below DMA 50 (₹1,144), indicating short-term weakness.
• 📉 P/E of 61.4 vs industry P/E of 22.6 signals overvaluation.
• 📉 PEG ratio of -3.22 and ROCE (4.90%) and ROE (2.31%) reflect weak capital efficiency.
• 📉 FII holding declined by 0.89%, showing reduced foreign investor confidence.
• 📉 Volume data unavailable, limiting liquidity assessment.

🚫 Company Negative News

• 📉 Analysts have expressed concern over inconsistent earnings and weak return ratios despite recent profit recovery.

✅ Company Positive News

• 🏢 PEL is restructuring its business to focus on financial services and pharmaceuticals, which may unlock long-term value.
• 📈 Return to profitability in the latest quarter has improved sentiment.

🏦 Industry

• 🏛️ Operates in diversified financials and pharma segments—both cyclical but with long-term growth potential.
• 📊 Industry P/E of 22.6 reflects moderate valuation benchmarks.

🧾 Conclusion

• 📉 PEL is in a technical consolidation phase with improving fundamentals but weak return metrics and valuation concerns.
• 📍 Optimal entry: ₹1,090–₹1,110 (near DMA 200 and support zone).
• 🚪 Exit if held: ₹1,160–₹1,180 (near resistance and DMA 50) unless momentum strengthens.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of earnings and volume trends.

I can also compare PEL’s swing setup with peers like L&T Finance or Piramal Pharma to refine your strategy.