PETRONET - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | PETRONET | Market Cap | 40,669 Cr. | Current Price | 271 ₹ | High / Low | 326 ₹ |
| Stock P/E | 11.4 | Book Value | 137 ₹ | Dividend Yield | 3.69 % | ROCE | 26.2 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 291 ₹ | DMA 200 | 290 ₹ |
| Chg in FII Hold | -1.73 % | Chg in DII Hold | 1.80 % | PAT Qtr | 848 Cr. | PAT Prev Qtr | 806 Cr. |
| RSI | 39.0 | MACD | -3.69 | Volume | 58,87,346 | Avg Vol 1Wk | 37,88,165 |
| Low price | 264 ₹ | High price | 326 ₹ | PEG Ratio | 2.21 | Debt to equity | 0.12 |
| 52w Index | 11.7 % | Qtr Profit Var | -2.16 % | EPS | 23.8 ₹ | Industry PE | 14.4 |
📊 PETRONET shows good potential for swing trading. The fundamentals are strong with ROCE 26.2%, ROE 21.4%, and EPS of ₹23.8. Valuation is attractive (P/E 11.4 vs industry 14.4), and dividend yield at 3.69% adds investor appeal. Technical indicators are weak: RSI at 39.0 is near oversold, MACD is negative, and the stock trades below both 50 DMA and 200 DMA. The optimal entry price would be near ₹265–₹270, close to support levels. If already holding, consider exiting around ₹290–₹295, where resistance from the 50 DMA and 200 DMA is expected.
✅ Positive
- Strong fundamentals: ROCE 26.2% and ROE 21.4% indicate efficient capital use.
- EPS at ₹23.8 shows consistent earnings power.
- Dividend yield of 3.69% provides steady income.
- DII holdings increased (+1.80%), showing domestic institutional support.
- Debt-to-equity ratio at 0.12 indicates low leverage risk.
⚠️ Limitation
- Stock trading below both 50 DMA (₹291) and 200 DMA (₹290), signaling bearish trend.
- FII holdings decreased (-1.73%), showing reduced foreign investor confidence.
- PEG ratio at 2.21 suggests valuation is not fully aligned with growth.
📉 Company Negative News
- Quarterly PAT declined slightly from ₹806 Cr. to ₹848 Cr. (-2.16%).
- MACD negative (-3.69), indicating weak momentum.
- RSI near oversold zone (39.0), showing weak technical strength.
📈 Company Positive News
- Strong dividend yield supports investor confidence.
- Quarterly PAT remains stable, showing resilience.
- DII inflows provide institutional backing.
🏭 Industry
- Industry P/E at 14.4 is slightly higher than PETRONET’s 11.4, suggesting undervaluation.
- Energy and LNG sector has long-term demand potential, though cyclical in nature.
📝 Conclusion
PETRONET is a good swing trade candidate with strong fundamentals and attractive valuation, but weak technicals. Entry is advisable near ₹265–₹270, with exit around ₹290–₹295 if already holding. Long-term investors may benefit from its strong ROCE, ROE, and dividend yield, while short-term traders should wait for technical confirmation before aggressive positioning.