RADICO - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.2

📊 Swing Trade Analysis: Radico Khaitan Ltd (RADICO)

Radico Khaitan presents a strong swing trade setup, driven by bullish momentum, robust earnings growth, and proximity to its 52-week high. While valuation is stretched and volume has dipped, technical indicators and institutional interest suggest continued upside potential.

✅ Strengths

Technical Momentum

RSI: 67.0 → Bullish, nearing overbought.

MACD: 44.1 → Strong positive crossover.

Price above DMA50 (₹2,814) and DMA200 (₹2,520) → Confirmed uptrend.

Earnings Growth

PAT Qtr: ₹139 Cr. vs ₹90.7 Cr. → 81.6% growth.

EPS: ₹30.1 → Solid earnings base.

Institutional Confidence

FII Holding ↑ 0.82% → Foreign investor accumulation.

52-Week Strength

Current price ₹3,010 is just below 52-week high of ₹3,036 → Strong price action.

⚠️ Risks

Valuation Concerns

P/E: 99.0 vs Industry PE: 33.0 → Highly overvalued.

PEG Ratio: 8.96 → Expensive relative to growth.

Profitability

ROCE: 16.2% and ROE: 13.6% → Moderate capital efficiency.

Volume Dip

Current volume (3.43L) < 1-week average (4.19L) → Slight cooling off.

DII Holding ↓ 0.81% → Domestic institutions trimming exposure.

Low Dividend Yield: 0.13% → Minimal passive income.

🎯 Optimal Entry Price

Buy Zone: ₹2,900–₹2,940

Slight pullback from current levels offers better risk-reward entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹3,100–₹3,150

Above 52-week high, capturing breakout momentum.

Stop Loss: ₹2,850

Below DMA50 to manage downside risk.

This setup suits momentum-driven traders who can monitor RSI and MACD for continuation signals and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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