PIDILITIND - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📈 Positive

• 📘 Strong fundamentals: ROCE of 30.5% and ROE of 23.2% indicate excellent capital efficiency.
• 💰 EPS of ₹21.8 and consistent profitability support long-term value.
• 💸 Dividend yield of 0.69% adds passive income potential.
• 📉 Very low debt-to-equity ratio of 0.03 reflects financial prudence.
• 📈 PAT of ₹586 Cr. with 8.1% QoQ growth shows stable earnings.

⚠️ Limitation

• 📉 RSI at 38.5 and MACD at -11.7 signal bearish momentum.
• 📉 Price below both DMA 50 (₹1,504) and DMA 200 (₹1,499) confirms technical weakness.
• 📉 P/E of 66.4 vs industry P/E of 32.5 suggests overvaluation.
• 📉 PEG ratio of 3.25 implies expensive valuation relative to growth.
• 📉 FII holding declined slightly (-0.05%), indicating cautious foreign sentiment.

🚫 Company Negative News

• 📉 No major negative news reported, but valuation and technical indicators remain weak.

✅ Company Positive News

• 🧪 PIDILITIND continues to lead in adhesives and specialty chemicals with strong brand equity and distribution network.
• 📈 Stable earnings and low debt profile support investor confidence.

🏦 Industry

• 🧱 Operates in the specialty chemicals and construction materials segment, which benefits from infrastructure growth and industrial demand.
• 📊 Industry P/E of 32.5 reflects moderate growth expectations.

🧾 Conclusion

• 📉 PIDILITIND is fundamentally strong but technically weak, making it a cautious swing trade candidate.
• 📍 Optimal entry: ₹1,420–₹1,440 (near support zone and below DMA levels).
• 🚪 Exit if held: ₹1,500–₹1,520 (near DMA 50) unless momentum improves.
• ⚠️ Suitable for swing trading with tight stop-loss and valuation awareness.

I can also chart PIDILITIND’s RSI and MACD trends to help visualize ideal entry and exit zones.