PETRONET - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | PETRONET | Market Cap | 44,558 Cr. | Current Price | 297 ₹ | High / Low | 326 ₹ |
| Stock P/E | 12.4 | Book Value | 137 ₹ | Dividend Yield | 3.36 % | ROCE | 26.2 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 282 ₹ | DMA 200 | 287 ₹ |
| Chg in FII Hold | -1.73 % | Chg in DII Hold | 1.80 % | PAT Qtr | 806 Cr. | PAT Prev Qtr | 851 Cr. |
| RSI | 60.7 | MACD | 2.72 | Volume | 45,75,789 | Avg Vol 1Wk | 30,13,552 |
| Low price | 264 ₹ | High price | 326 ₹ | PEG Ratio | 2.41 | Debt to equity | 0.12 |
| 52w Index | 53.2 % | Qtr Profit Var | -4.94 % | EPS | 24.0 ₹ | Industry PE | 19.5 |
📊 PETRONET shows strong fundamentals with supportive technicals, making it a good candidate for swing trading. The stock is currently at ₹297, trading above both its 50 DMA (₹282) and 200 DMA (₹287), reflecting bullish momentum. RSI at 60.7 indicates moderate strength, while MACD at 2.72 confirms positive momentum. With attractive valuation (P/E 12.4 vs industry 19.5), strong ROCE (26.2%), and ROE (21.4%), fundamentals remain solid. Optimal entry would be in the ₹285–₹295 range. If already holding, exit near ₹320–₹325, close to resistance near the 52-week high.
✅ Positive
- Low P/E of 12.4 compared to industry PE of 19.5 suggests undervaluation.
- Strong ROCE (26.2%) and ROE (21.4%) highlight operational efficiency.
- Dividend yield of 3.36% provides attractive returns.
- DII holdings increased (+1.80%), showing domestic institutional support.
- Debt-to-equity ratio at 0.12 indicates low leverage risk.
- Stock trading above both 50 DMA and 200 DMA confirms bullish trend.
⚠️ Limitation
- PEG ratio of 2.41 suggests valuation is slightly expensive relative to growth.
- Quarterly PAT declined (₹851 Cr. to ₹806 Cr.), showing short-term weakness.
- FII holdings decreased (-1.73%), reflecting reduced foreign investor confidence.
📉 Company Negative News
- Quarterly profit variance (-4.94%) highlights earnings pressure.
- FII outflows (-1.73%) indicate reduced foreign participation.
📈 Company Positive News
- DII inflows (+1.80%) reflect confidence from domestic institutions.
- Strong dividend yield adds investor appeal.
- EPS of ₹24.0 supports valuation strength.
🏭 Industry
- Industry PE at 19.5 is higher than PETRONET’s 12.4, suggesting undervaluation.
- Energy and LNG sector remains strategically important, supported by demand growth.
🔎 Conclusion
PETRONET is a strong swing candidate with attractive valuation and solid fundamentals. Entry near ₹285–₹295 offers margin of safety. Exit around ₹320–₹325 is advisable if already holding, as resistance is expected near the 52-week high. Risk management is essential due to slight earnings decline and FII outflows, but overall setup favors bullish swing trades.