RAYMONDLSL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.5

📊 Based on the given parameters, RAYMONDLSL is a weak candidate for swing trading. The stock is trading at a very high P/E (113 vs industry 19.1), suggesting severe overvaluation. Technical indicators (RSI 35.4, MACD -20.6) show bearish momentum, and efficiency metrics (ROCE 2.10%, ROE 0.50%) are poor. While the company has turned profitable this quarter (PAT 68.6 Cr vs -1.65 Cr loss previously), overall fundamentals remain weak. Short-term opportunities may exist near support levels, but risk is elevated.

💡 Optimal Entry Price: Around 1,050–1,060 ₹ (near support zone and oversold RSI).

🚪 Exit Strategy: If already holding, consider exiting near 1,150–1,170 ₹ resistance or on breakdown below 1,050 ₹.

✅ Positive

• 📈 PAT recovery (68.6 Cr vs -1.65 Cr loss previously)
• 📊 EPS at 8.58 ₹, supporting earnings base
• 📉 Debt-to-equity ratio at 0.22, manageable leverage
• 📈 FII holdings increased slightly (+0.19%)

⚠️ Limitation

• 📉 Extremely high P/E ratio (113 vs industry 19.1)
• 📊 Weak ROCE (2.10%) and ROE (0.50%)
• 📉 No dividend yield (0.00%)
• 📊 PEG ratio at 3.07, expensive growth valuation

🚨 Company Negative News

• 📉 Decline in DII holdings (-0.37%)
• 📊 Quarterly profit variation negative (-11.4%) despite PAT recovery

🌟 Company Positive News

• 📈 PAT turned positive this quarter (68.6 Cr)
• 📊 FII inflows (+0.19%) provide some support

🏭 Industry

• 📊 Industry PE at 19.1, far lower than RAYMONDLSL’s valuation
• 📈 Textile and lifestyle sector facing cyclical demand pressures but long-term growth potential

📌 Conclusion

RAYMONDLSL is not an attractive swing trade candidate currently due to overvaluation, weak efficiency metrics, and bearish technical signals. Entry near 1,050–1,060 ₹ may offer limited upside, while exits should be targeted near 1,150–1,170 ₹. Traders should remain cautious and use strict stop-loss management given high valuation and fragile fundamentals.

I can also prepare a comparison of RAYMONDLSL with another textile/lifestyle stock to highlight relative swing trade opportunities.