VEDL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.8
| Stock Code | VEDL | Market Cap | 1,15,198 Cr. | Current Price | 295 ₹ | High / Low | 296 ₹ |
| Stock P/E | 63.4 | Book Value | 200 ₹ | Dividend Yield | 14.8 % | ROCE | 2.74 % |
| ROE | 2.37 % | Face Value | 1.00 ₹ | DMA 50 | 259 ₹ | DMA 200 | 218 ₹ |
| Chg in FII Hold | 1.78 % | Chg in DII Hold | -1.88 % | PAT Qtr | -298 Cr. | PAT Prev Qtr | -56.7 Cr. |
| RSI | 66.1 | MACD | 6.86 | Volume | 9,21,16,248 | Avg Vol 1Wk | 6,73,36,042 |
| Low price | 144 ₹ | High price | 296 ₹ | PEG Ratio | -1.09 | Debt to equity | 0.14 |
| 52w Index | 99.1 % | Qtr Profit Var | 16.1 % | EPS | 45.3 ₹ | Industry PE | 41.3 |
VEDL shows strong price momentum but weak fundamentals for swing trading. The RSI (66.1) indicates bullish momentum, while MACD (6.86) confirms strength. The stock is trading well above its 50 DMA (259 ₹) and 200 DMA (218 ₹), reflecting a sharp uptrend. However, fundamentals are poor with negative quarterly PAT (-298 Cr. vs -56.7 Cr.), low ROCE (2.74%), and ROE (2.37%). Despite a high dividend yield (14.8%), the P/E (63.4 vs industry 41.3) suggests stretched valuation.
✅ Entry Price: Safer entry zone is around 270–280 ₹, closer to support.
📤 Exit Strategy: If already holding, consider exiting near 295–300 ₹ resistance, or cut losses if price falls below 260 ₹.
🌟 Positive
- High dividend yield of 14.8% provides strong cash returns.
- Stock trading above both 50 DMA and 200 DMA, confirming momentum.
- FII holdings increased (+1.78%), showing foreign investor interest.
- 52-week return of 99.1% highlights strong price performance.
⚠️ Limitation
- Negative quarterly PAT (-298 Cr.), showing weak profitability.
- Low ROCE (2.74%) and ROE (2.37%) indicate poor efficiency.
- High valuation with P/E at 63.4 vs industry 41.3.
- PEG ratio (-1.09) suggests poor growth prospects.
📰 Company Negative News
- Recent quarterly losses raise concerns about sustainability.
- DII holdings decreased (-1.88%), showing reduced domestic confidence.
📈 Company Positive News
- Strong dividend payout attracts income-focused investors.
- FII inflows (+1.78%) indicate foreign confidence despite weak earnings.
- Stock momentum supported by high trading volumes above weekly average.
🏭 Industry
- Industry P/E at 41.3 indicates moderate valuation.
- VEDL trades at a steep premium, reflecting momentum-driven demand rather than fundamentals.
🔎 Conclusion
VEDL is a speculative swing trade candidate with strong momentum and attractive dividend yield but weak fundamentals and profitability. Entry near 270–280 ₹ offers better risk control, while exit near 295–300 ₹ captures upside. Caution is advised due to negative earnings, low efficiency ratios, and stretched valuations.