PRAJIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | PRAJIND | Market Cap | 5,382 Cr. | Current Price | 293 ₹ | High / Low | 640 ₹ |
| Stock P/E | 30.5 | Book Value | 74.5 ₹ | Dividend Yield | 2.05 % | ROCE | 23.6 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 313 ₹ | DMA 200 | 401 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | -1.19 % | PAT Qtr | 41.7 Cr. | PAT Prev Qtr | 20.0 Cr. |
| RSI | 45.5 | MACD | -9.71 | Volume | 11,50,171 | Avg Vol 1Wk | 8,31,511 |
| Low price | 273 ₹ | High price | 640 ₹ | PEG Ratio | 1.44 | Debt to equity | 0.05 |
| 52w Index | 5.41 % | Qtr Profit Var | -28.0 % | EPS | 9.59 ₹ | Industry PE | 29.7 |
📊 Analysis: PRAJIND has strong efficiency metrics with ROCE (23.6%) and ROE (18.2%), supported by very low debt-to-equity (0.05). The current price (₹293) is below both 50 DMA (₹313) and 200 DMA (₹401), indicating bearish momentum. RSI at 45.5 suggests neutral-to-weak strength, while MACD (-9.71) confirms bearish divergence. Valuation is slightly above industry average (P/E 30.5 vs 29.7), and quarterly profit variation (-28%) raises caution. Despite strong fundamentals, the stock is currently under pressure, making it a cautious swing trade candidate.
💡 Optimal Entry Price: Around ₹280–₹285 (near support zone close to 52-week low).
🚪 Exit Strategy: If already holding, consider booking profits near ₹310–₹320 (50 DMA resistance). Exit below ₹273 if weakness continues to protect capital.
✅ Positive
- Strong ROCE (23.6%) and ROE (18.2%).
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 2.05% adds investor appeal.
- EPS of ₹9.59 shows consistent earnings power.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- MACD indicates bearish trend.
- Valuation slightly above industry average (P/E 30.5 vs 29.7).
- Decline in institutional holdings (FII -0.21%, DII -1.19%).
📉 Company Negative News
- Quarterly profit variation at -28% shows earnings pressure.
- Price down significantly from 52-week high (₹640 → ₹293).
📈 Company Positive News
- PAT improved sequentially (₹20 Cr → ₹41.7 Cr).
- Strong trading volume above weekly average indicates market activity.
🏭 Industry
- Industry P/E at 29.7 is close to PRAJIND’s valuation.
- Industrial engineering sector benefits from renewable energy and ethanol projects.
🔎 Conclusion
PRAJIND is fundamentally strong with high efficiency and low debt, but technical indicators show weakness. It is a cautious swing trade candidate with entry near ₹280–₹285 and exit near ₹310–₹320. Risk management is essential due to recent profit decline and bearish momentum.