PIDILITIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | PIDILITIND | Market Cap | 1,45,088 Cr. | Current Price | 1,428 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 65.0 | Book Value | 92.8 ₹ | Dividend Yield | 0.70 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,464 ₹ | DMA 200 | 1,484 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 586 Cr. | PAT Prev Qtr | 650 Cr. |
| RSI | 41.8 | MACD | -13.8 | Volume | 15,00,878 | Avg Vol 1Wk | 9,84,428 |
| Low price | 1,310 ₹ | High price | 1,575 ₹ | PEG Ratio | 3.19 | Debt to equity | 0.03 |
| 52w Index | 44.4 % | Qtr Profit Var | 8.10 % | EPS | 21.8 ₹ | Industry PE | 27.0 |
📊 PIDILITIND shows strong fundamentals but weak technicals, making it a moderate candidate for swing trading. The stock is currently at ₹1,428, trading below both its 50 DMA (₹1,464) and 200 DMA (₹1,484), reflecting short-term bearish sentiment. RSI at 41.8 is near oversold territory, while MACD at -13.8 confirms downward momentum. With robust ROCE (30.5%), ROE (23.2%), and EPS (₹21.8), fundamentals remain solid. Optimal entry would be in the ₹1,380–₹1,420 range. If already holding, exit near ₹1,470–₹1,490, where resistance from DMA levels is expected.
✅ Positive
- Strong ROCE (30.5%) and ROE (23.2%) highlight operational efficiency.
- EPS of ₹21.8 supports valuation strength.
- Dividend yield of 0.70% provides modest returns.
- Debt-to-equity ratio at 0.03 indicates negligible leverage risk.
- DII holdings increased (+0.06%), showing domestic institutional support.
⚠️ Limitation
- High P/E of 65 compared to industry PE of 27 suggests overvaluation.
- PEG ratio of 3.19 indicates expensive valuation relative to growth.
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- Quarterly PAT declined (₹650 Cr. to ₹586 Cr.), showing short-term earnings pressure.
📉 Company Negative News
- FII holdings decreased (-0.07%), showing reduced foreign investor confidence.
- MACD negative (-13.8), confirming bearish momentum.
- 52-week index at 44.4% highlights underperformance relative to peers.
📈 Company Positive News
- Quarterly profit variance (+8.10% YoY) shows improvement despite sequential decline.
- DII inflows (+0.06%) reflect confidence from domestic institutions.
- Strong fundamentals with high ROCE and ROE.
🏭 Industry
- Industry PE at 27.0 is much lower than PIDILITIND’s 65, highlighting overvaluation.
- Chemicals and adhesives sector remains resilient, supported by construction and industrial demand.
🔎 Conclusion
PIDILITIND is a moderate swing candidate with excellent fundamentals but weak technicals and valuation concerns. Entry near ₹1,380–₹1,420 offers margin of safety. Exit around ₹1,470–₹1,490 is advisable if already holding, as resistance is expected near DMA levels. Risk management is essential due to bearish momentum and high valuation relative to industry peers.