⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VEDL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | VEDL | Market Cap | 2,68,976 Cr. | Current Price | 688 ₹ | High / Low | 770 ₹ |
| Stock P/E | 53.6 | Book Value | 189 ₹ | Dividend Yield | 6.32 % | ROCE | 18.5 % |
| ROE | 21.8 % | Face Value | 1.00 ₹ | DMA 50 | 618 ₹ | DMA 200 | 519 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.94 % | PAT Qtr | 33.5 Cr. | PAT Prev Qtr | -449 Cr. |
| RSI | 57.6 | MACD | 23.8 | Volume | 1,40,02,400 | Avg Vol 1Wk | 3,60,08,042 |
| Low price | 362 ₹ | High price | 770 ₹ | PEG Ratio | -13.3 | Debt to equity | 0.71 |
| 52w Index | 79.8 % | Qtr Profit Var | 111 % | EPS | 31.3 ₹ | Industry PE | 33.5 |
📊 VEDL shows good potential for swing trading with strong dividend yield, improved profitability, and bullish technical indicators. However, high debt and valuation concerns limit upside. Entry is favorable near support levels, while exits should be timed around resistance zones.
Positive ✅
- Strong dividend yield of 6.32% provides consistent shareholder returns.
- ROCE (18.5%) and ROE (21.8%) reflect efficient capital use.
- Quarterly PAT recovery (33.5 Cr. vs -449 Cr.) shows turnaround momentum.
- RSI at 57.6 indicates healthy momentum.
- MACD (23.8) signals bullish trend continuation.
- Stock trading above both 50 DMA (618 ₹) and 200 DMA (519 ₹), showing technical strength.
Limitation ⚠️
- High P/E ratio (53.6) compared to industry average (33.5), suggesting overvaluation.
- Debt-to-equity ratio of 0.71 indicates relatively high leverage.
- PEG ratio (-13.3) suggests poor growth prospects.
- Trading volume lower than weekly average, reducing short-term momentum strength.
Company Negative News ❌
- Previous quarter losses (-449 Cr.) highlight earnings volatility.
- DII holdings decreased (-0.94%), showing reduced domestic institutional confidence.
Company Positive News 🌟
- Strong quarterly profit recovery (+111% variation).
- FII holdings increased (+1.07%), reflecting foreign investor confidence.
- EPS of 31.3 ₹ supports earnings strength.
- Strong 52-week performance (+79.8%) highlights investor confidence.
Industry 📈
- Industry P/E at 33.5 is lower, highlighting sector stability compared to VEDL’s valuation.
- Metals and mining sector demand remains cyclical but strong in commodity upcycles.
Conclusion 📝
VEDL is a moderately attractive swing trade candidate with bullish technicals and strong dividend yield. Optimal entry would be near 670–680 ₹ support if RSI remains stable. For existing holders, consider exiting around 740–760 ₹ (near recent highs and resistance), as upside is capped by high debt and valuation concerns.