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RADICO - Swing Trade Analysis with AI Signals

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Rating: 3.7

Last Updated Time : 05 May 26, 04:22 pm

📊 Swing Trade Rating: 3.7

Stock Code RADICO Market Cap 45,379 Cr. Current Price 3,389 ₹ High / Low 3,695 ₹
Stock P/E 85.5 Book Value 218 ₹ Dividend Yield 0.12 % ROCE 16.2 %
ROE 13.6 % Face Value 2.00 ₹ DMA 50 2,971 ₹ DMA 200 2,867 ₹
Chg in FII Hold -2.19 % Chg in DII Hold 3.32 % PAT Qtr 162 Cr. PAT Prev Qtr 139 Cr.
RSI 68.2 MACD 176 Volume 3,53,402 Avg Vol 1Wk 4,58,810
Low price 2,310 ₹ High price 3,695 ₹ PEG Ratio 7.75 Debt to equity 0.21
52w Index 77.9 % Qtr Profit Var 69.1 % EPS 38.7 ₹ Industry PE 41.0

RADICO shows strong revenue growth and profit momentum, but valuation is stretched with a very high P/E (85.5) compared to industry average (41.0). The stock is trading near its 52-week high (₹3,695) with RSI at 68.2, indicating overbought conditions. Optimal entry would be on a pullback closer to the 50 DMA (₹2,970–₹3,050). If already holding, consider exiting near ₹3,600–₹3,650 to lock in gains before resistance.

✅ Positive

  • Quarterly PAT growth from ₹139 Cr to ₹162 Cr (+69.1%).
  • ROCE (16.2%) and ROE (13.6%) show decent efficiency.
  • Low debt-to-equity ratio (0.21) ensures financial stability.
  • DII holdings increased by 3.32%, reflecting strong domestic investor confidence.

⚠️ Limitation

  • Extremely high P/E of 85.5 compared to industry average of 41.0.
  • Dividend yield is very low at 0.12%.
  • PEG ratio of 7.75 suggests overvaluation relative to growth.
  • FII holdings decreased by 2.19%, showing reduced foreign investor interest.

📰 Company Negative News

  • No major negative news reported, but valuation concerns remain significant.

🌟 Company Positive News

  • Strong quarterly profit growth highlights operational strength.
  • Domestic institutional investors increasing stake (+3.32%).

🏭 Industry

  • Industry P/E at 41.0, much lower than RADICO’s 85.5, suggesting premium valuation.
  • Alcoholic beverages sector benefiting from rising demand and premiumization trends.

📌 Conclusion

RADICO is fundamentally strong with profit growth and low debt, but currently overvalued and technically overbought. Best swing trade entry is on a correction near ₹2,970–₹3,050. If already holding, exit near ₹3,600–₹3,650 to secure profits.

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