PEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | PEL | Market Cap | 25,483 Cr. | Current Price | 1,124 ₹ | High / Low | 1,356 ₹ |
| Stock P/E | 61.4 | Book Value | 974 ₹ | Dividend Yield | 0.98 % | ROCE | 4.90 % |
| ROE | 2.31 % | Face Value | 2.00 ₹ | DMA 50 | 1,144 ₹ | DMA 200 | 1,096 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.86 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | -23.3 Cr. |
| RSI | 48.4 | MACD | -6.85 | Volume | 0 | Avg Vol 1Wk | 0 |
| Low price | 848 ₹ | High price | 1,356 ₹ | PEG Ratio | -3.22 | Debt to equity | 0.38 |
| 52w Index | 54.4 % | Qtr Profit Var | -28.8 % | EPS | 19.4 ₹ | Industry PE | 21.9 |
📊 PEL shows weak fundamentals with low ROCE and ROE, high P/E compared to industry average, and negative PEG ratio. While the latest quarter shows a profit recovery, technical indicators (MACD negative, RSI neutral) suggest limited momentum. It is a risky candidate for swing trading, suitable only for aggressive traders looking for short-term volatility.
💡 Optimal Entry Price: Around 1,080–1,100 ₹ (near 200 DMA support zone).
🚪 Exit Strategy: If already holding, consider exiting near 1,200–1,250 ₹ (close to resistance) or if RSI crosses 60 with weakening momentum.
Positive
- ✅ P/E (61.4) reflects investor optimism despite industry average being lower.
- ✅ DII holdings increased (+0.86%), showing domestic institutional support.
- ✅ Debt-to-equity ratio (0.38) indicates moderate leverage, not excessive.
- ✅ PAT recovery from -23.3 Cr. to 162 Cr. shows turnaround potential.
Limitation
- ⚠️ ROCE (4.90%) and ROE (2.31%) reflect poor efficiency.
- ⚠️ PEG ratio (-3.22) suggests unsustainable valuation relative to growth.
- ⚠️ MACD (-6.85) indicates bearish short-term trend.
- ⚠️ Dividend yield (0.98%) is modest compared to peers.
Company Negative News
- 📉 Quarterly profit variation (-28.8%) shows earnings inconsistency.
- 📉 FII holdings decreased (-0.89%), reflecting reduced foreign investor confidence.
- 📉 EPS at 19.4 ₹ remains low relative to valuation.
Company Positive News
- 📈 PAT recovery from loss to profit indicates operational improvement.
- 📈 DII support increased, adding stability to stock demand.
- 📈 Technicals show RSI near neutral, leaving room for rebound.
Industry
- 🏢 Industry PE at 21.9 vs. PEL’s 61.4 highlights premium valuation.
- 🏢 Diversified financial and healthcare sector remains cyclical, dependent on macroeconomic conditions.
Conclusion
🔎 PEL is a risky swing trade candidate with weak fundamentals and stretched valuations. Entry near 1,080–1,100 ₹ may offer limited upside, while exit near 1,200–1,250 ₹ is prudent. Conservative investors should avoid until efficiency improves and valuations normalize, while aggressive traders may exploit short-term rebounds supported by recent profit recovery.