RADICO - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: Radico Khaitan Ltd. (RADICO)

Swing Trade Rating: 3.6

💹 Technical View

Price Action: Trading at ₹2,687 — slightly above both DMA 50 (₹2,632) and DMA 200 (₹2,377), which reflects ongoing strength.

RSI at 50.9 — in a neutral zone, not indicating oversold or overbought conditions.

MACD at 24.2 — bullish momentum is active, but losing pace.

Volume is higher than average — increased participation suggests interest from traders.

52-week high proximity (91.1%) — limited room for breakout unless fundamentals drive fresh optimism.

🧮 Fundamental Highlights

Valuation

P/E of 104 vs industry PE of 32.9 — richly valued; priced for perfection.

PEG Ratio of 11.0 — signals growth might not justify the current valuation level.

Profitability

ROCE: 16.0%, ROE: 13.3% — healthy margins, but not outstanding.

EPS of ₹25.8 — respectable, but doesn’t support lofty valuations.

Quarterly Performance

PAT slightly decreased: ₹95.5 Cr → ₹92.1 Cr.

Yet Qtr Profit Var of 70.8% — reflects improved YoY or operational efficiencies.

Institutional Sentiment

FII holding ↑ 0.82% — mild bullish sign.

DII ↓ −0.81% — slight reservation from domestic institutions.

Dividend Yield: 0.15% — not a factor in swing decisions but shows low capital return.

Low Debt: D/E at 0.27 — company is financially stable.

🎯 Optimal Entry Point

Buy Zone: ₹2,620–₹2,645

Near 50 DMA allows entry with manageable downside.

Look for MACD continuation and RSI pushing above 55 for confirmation.

🚪 Exit Strategy (If Already Holding)

Target Price: ₹2,760–₹2,780

Very close to 52-week high; ideal spot to book profits.

Stop-Loss: ₹2,580

Below recent swing support and 50 DMA for risk protection.

RADICO shows a mildly favorable technical setup with bullish indicators but comes with elevated valuation concerns. It may offer short-term momentum gains for swing traders, especially with improving volumes and near-term technical support. However, upside could be capped unless earnings surprise positively or institutions re-engage. If you're eyeing more undervalued picks with breakout potential, I’d be happy to screen a few from FMCG or consumer discretionary. 🧴📈

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