PIDILITIND - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.7

📊 PIDILITIND shows strong fundamentals with high ROCE and ROE, but trades at a premium valuation compared to industry peers. The RSI at 42.1 indicates neutral momentum, while MACD is slightly negative, suggesting mild bearish sentiment. The stock is trading close to its DMA 50 and DMA 200, offering a tactical swing setup if support holds.

💡 Optimal Entry Price: Around 1,440–1,460 ₹ (near DMA support levels).

🚪 Exit Strategy: If already holding, consider exiting near 1,500–1,520 ₹ (DMA 200 resistance zone) or trail stop-loss below 1,420 ₹.

✅ Positive

• 📈 Strong ROCE (30.5%) and ROE (23.2%) indicate efficient capital use.
• 💼 Large market cap of 1,48,759 Cr. provides stability.
• 🛡️ Very low debt-to-equity ratio (0.03), ensuring financial resilience.
• 💰 Dividend yield of 0.69% adds shareholder value.

⚠️ Limitation

• 📉 High P/E ratio (66.7) compared to industry PE (26.6), showing premium valuation.
• 🔻 PEG ratio of 3.27 suggests limited growth-adjusted value.
• 📊 Current price below DMA 200, reflecting weak technical trend.
• 📉 Trading volume lower than weekly average, indicating reduced momentum.

🚨 Company Negative News

• 📉 Quarterly PAT declined from 650 Cr. to 586 Cr. (-8.10%).
• ⚠️ FII holdings decreased slightly (-0.05%), showing reduced foreign investor confidence.

🌟 Company Positive News

• 💼 Strong efficiency ratios support long-term fundamentals.
• 📈 Stock trading near DMA support zones, offering tactical rebound potential.
• 💰 Consistent dividend payout history adds shareholder value.

🏭 Industry

• 📊 Industry PE at 26.6 vs PIDILITIND’s 66.7, showing premium valuation.
• 🌐 Specialty chemicals and adhesives sector remains resilient with steady demand from construction and consumer markets.

📝 Conclusion

⚖️ PIDILITIND is a moderately strong swing trade candidate with excellent fundamentals but weak short-term technicals. Entry near 1,440–1,460 ₹ offers a favorable rebound setup, with exits planned around 1,500–1,520 ₹. Risk management is essential due to overvaluation and declining quarterly profits, but strong efficiency ratios and low debt support medium-term resilience.

I can also prepare a comparison of PIDILITIND with another specialty chemical stock to highlight relative swing trade opportunities.