RELINFRA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.3
| Stock Code | RELINFRA | Market Cap | 5,420 Cr. | Current Price | 133 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 170 ₹ | DMA 200 | 236 ₹ | Chg in FII Hold | -1.35 % |
| Chg in DII Hold | -0.21 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 39.4 |
| MACD | -10.8 | Volume | 36,37,911 | Avg Vol 1Wk | 32,31,035 | Low price | 115 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 5.71 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 24.8 |
📊 Reliance Infrastructure (RELINFRA) shows very weak fundamentals with negative ROCE (-1.41%) and ROE (-8.12%), consistent losses (PAT -166 Cr.), and no dividend yield. The stock is trading well below both 50 DMA (170 ₹) and 200 DMA (236 ₹), with RSI at 39.4 indicating oversold conditions and MACD at -10.8 showing bearish momentum. Despite strong trading volumes, the company’s financial weakness and poor sentiment make it a risky candidate for swing trading.
💡 Optimal Entry Price: Around 125 ₹ – 130 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 150 ₹ – 160 ₹ (short-term resistance) or place a stop-loss below 120 ₹.
✅ Positive
- Strong trading volume (36.3 lakh vs. 32.3 lakh average) indicates active investor interest.
- Debt-to-equity ratio of 0.03 shows minimal leverage.
- Book value of 595 ₹ is significantly higher than current price, suggesting asset backing.
⚠️ Limitation
- Negative ROCE (-1.41%) and ROE (-8.12%) reflect poor capital efficiency.
- Consistent losses with negative EPS (-10.0 ₹).
- Stock trading far below DMA levels indicates strong bearish trend.
- No dividend yield, limiting investor returns outside capital gains.
📉 Company Negative News
- Quarterly PAT worsened from -152 Cr. to -166 Cr., showing continued losses.
- FII holdings decreased (-1.35%) and DII holdings (-0.21%), reflecting reduced institutional confidence.
- Stock trading at only 5.71% of its 52-week range, showing extreme weakness.
📈 Company Positive News
- Oversold RSI (39.4) may trigger short-term technical rebound.
- Minimal debt provides some financial cushion despite losses.
🏭 Industry
- Industry PE at 24.8 vs. RELINFRA’s negative earnings highlights severe underperformance.
- Infrastructure sector benefits from government spending, but company-specific fundamentals remain weak.
🔎 Conclusion
Reliance Infrastructure is fundamentally weak with consistent losses and poor efficiency, though strong volumes and oversold RSI may offer short-term speculative opportunities. Swing traders may enter near 125 ₹ – 130 ₹ with a target around 150 ₹ – 160 ₹. Stop-loss below 120 ₹ is recommended. The stock offers limited swing trade potential with a rating of 2.3.