RADICO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | RADICO | Market Cap | 34,765 Cr. | Current Price | 2,594 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 65.5 | Book Value | 218 ₹ | Dividend Yield | 0.15 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 2,817 ₹ | DMA 200 | 2,831 ₹ |
| Chg in FII Hold | 1.82 % | Chg in DII Hold | -1.45 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 38.9 | MACD | -21.1 | Volume | 4,17,442 | Avg Vol 1Wk | 4,00,161 |
| Low price | 2,132 ₹ | High price | 3,695 ₹ | PEG Ratio | 5.94 | Debt to equity | 0.21 |
| 52w Index | 29.6 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 32.4 |
📊 Radico Khaitan shows strong fundamentals but weak technical signals, making it a cautious candidate for swing trading. The RSI at 38.9 is near oversold territory, while MACD (-21.1) indicates bearish momentum. The stock is trading below both its 50 DMA (2,817 ₹) and 200 DMA (2,831 ₹), signaling short-term weakness. Valuation is stretched with a P/E of 65.5 compared to industry average of 32.4, though strong profit growth and rising FII interest provide optimism.
💡 Optimal Entry Price: Around 2,550–2,600 ₹ (near current support)
💡 Exit Strategy (if already holding): Consider exiting near 2,800–2,850 ₹ (DMA resistance) unless momentum strengthens.
🌟 Positive
- Strong ROCE (16.2%) and ROE (13.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.21) shows financial stability.
- Quarterly PAT growth (162 Cr. vs 139 Cr.) reflects earnings improvement.
- EPS of 38.7 ₹ supports long-term earnings consistency.
- FII holdings increased (+1.82%), showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio (65.5) compared to industry average (32.4), suggesting overvaluation.
- Dividend yield of 0.15% is very low.
- PEG ratio of 5.94 indicates limited growth relative to valuation.
- Stock trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- Bearish technical indicators: RSI near oversold and MACD negative.
- Stock underperforming relative to recent highs (3,695 ₹).
- DII holdings declined (-1.45%), showing reduced domestic confidence.
📈 Company Positive News
- Quarterly profit growth of 69.1% shows strong operational performance.
- Financially stable with low debt levels.
- Foreign institutional investors increasing holdings significantly.
🏭 Industry
- Industry P/E at 32.4, while Radico trades at a premium (65.5).
- Alcoholic beverages sector benefits from rising demand in India.
- Competition remains strong, but Radico has established brand presence.
✅ Conclusion
Radico Khaitan is fundamentally strong but technically weak, making it a cautious swing trade candidate. Entry near 2,550–2,600 ₹ is favorable, with an exit target around 2,800–2,850 ₹. Traders should remain cautious due to stretched valuations and weak momentum, while long-term investors may hold for sectoral growth potential supported by strong profit performance.