RADICO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 Positive

• 📊 Strong technicals: Price is above both DMA 50 (₹3,009) and DMA 200 (₹2,665), indicating bullish momentum.
• 📈 RSI at 61.8 and MACD at 64.5 support continued upward trend.
• 📈 ROCE of 16.2% and ROE of 13.6% reflect solid operational efficiency.
• 📈 EPS of ₹34.3 and consistent PAT (₹139 Cr.) show earnings stability.
• 📈 FII holding increased by 0.23%, indicating growing foreign investor confidence.
• 📉 Low debt-to-equity ratio of 0.21 supports financial health.

⚠️ Limitation

• 📉 P/E of 92.1 vs industry P/E of 33.7 signals significant overvaluation.
• 📉 PEG ratio of 8.34 suggests expensive valuation relative to growth.
• 📉 Volume (2.68 lakh) is below 1-week average (4.83 lakh), indicating reduced participation.
• 📉 Dividend yield of 0.13% offers minimal passive income.
• 📉 DII holding declined by 0.48%, showing cautious domestic sentiment.

🚫 Company Negative News

• 📉 Analysts have raised concerns over stretched valuations and margin pressures in the premium liquor segment.

✅ Company Positive News

• 🥃 RADICO continues to benefit from premiumization trends and strong brand equity in the spirits market.
• 📈 Stable earnings and product innovation support long-term growth visibility.

🏦 Industry

• 🍾 Operates in the alcoholic beverages sector, which is cyclical but benefits from rising disposable income and premium consumption trends.
• 📊 Industry P/E of 33.7 reflects moderate optimism and growth expectations.

🧾 Conclusion

• 📈 RADICO is technically strong and fundamentally stable, making it a good candidate for swing trading despite valuation concerns.
• 📍 Optimal entry: ₹3,080–₹3,100 (near DMA 50 and support zone).
• 🚪 Exit if held: ₹3,350–₹3,400 (near recent high) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of volume and valuation signals.

I can also compare RADICO’s swing setup with peers like United Spirits or Globus Spirits to help refine your trade timing.