PIDILITIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | PIDILITIND | Market Cap | 1,33,283 Cr. | Current Price | 1,309 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 57.9 | Book Value | 92.8 ₹ | Dividend Yield | 0.76 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,440 ₹ | DMA 200 | 1,473 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 607 Cr. | PAT Prev Qtr | 586 Cr. |
| RSI | 31.9 | MACD | -33.5 | Volume | 9,92,444 | Avg Vol 1Wk | 6,21,681 |
| Low price | 1,304 ₹ | High price | 1,575 ₹ | PEG Ratio | 2.84 | Debt to equity | 0.03 |
| 52w Index | 1.84 % | Qtr Profit Var | 13.5 % | EPS | 22.4 ₹ | Industry PE | 25.2 |
📊 PIDILITIND shows moderate potential for swing trading. The fundamentals are strong with ROCE 30.5%, ROE 23.2%, and EPS of ₹22.4, while debt levels are negligible (0.03). Dividend yield at 0.76% adds investor appeal. Valuation is stretched (P/E 57.9 vs industry 25.2, PEG 2.84), and technical indicators are weak: RSI at 31.9 is oversold, MACD is negative, and the stock trades below both 50 DMA and 200 DMA. The optimal entry price would be near ₹1,305–₹1,315, close to support levels. If already holding, consider exiting around ₹1,440–₹1,460, where resistance from the 50 DMA is expected.
✅ Positive
- Strong fundamentals: ROCE 30.5% and ROE 23.2% indicate efficient capital use.
- EPS at ₹22.4 reflects consistent earnings power.
- Debt-to-equity ratio at 0.03 shows minimal leverage risk.
- Dividend yield of 0.76% provides passive income.
- Quarterly PAT improved from ₹586 Cr. to ₹607 Cr. (+13.5%).
⚠️ Limitation
- High P/E (57.9) compared to industry average (25.2), suggesting overvaluation.
- PEG ratio at 2.84 indicates growth is not fully aligned with valuation.
- Stock trading below both 50 DMA (₹1,440) and 200 DMA (₹1,473), signaling bearish trend.
- FII holdings decreased (-0.07%), showing reduced foreign investor confidence.
📉 Company Negative News
- MACD negative (-33.5), indicating weak momentum.
- RSI oversold (31.9), showing technical weakness.
- Stock has fallen from its 52-week high of ₹1,575.
📈 Company Positive News
- Quarterly PAT growth shows operational improvement.
- DII holdings increased slightly (+0.06%), showing domestic institutional support.
- Dividend yield supports investor confidence.
🏭 Industry
- Industry P/E at 25.2 is much lower than PIDILITIND’s, suggesting peers may be better valued.
- Chemicals and adhesives industry has strong long-term demand, driven by construction and industrial growth.
📝 Conclusion
PIDILITIND is a moderately good swing trade candidate with strong fundamentals but weak technicals and stretched valuation. Entry is advisable near ₹1,305–₹1,315, with exit around ₹1,440–₹1,460 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.