VEDL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | VEDL | Market Cap | 2,60,082 Cr. | Current Price | 665 ₹ | High / Low | 770 ₹ |
| Stock P/E | 51.9 | Book Value | 189 ₹ | Dividend Yield | 6.54 % | ROCE | 18.5 % |
| ROE | 21.8 % | Face Value | 1.00 ₹ | DMA 50 | 674 ₹ | DMA 200 | 565 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.94 % | PAT Qtr | 33.5 Cr. | PAT Prev Qtr | -449 Cr. |
| RSI | 41.7 | MACD | 1.16 | Volume | 1,47,19,339 | Avg Vol 1Wk | 1,27,89,468 |
| Low price | 362 ₹ | High price | 770 ₹ | PEG Ratio | -12.8 | Debt to equity | 0.71 |
| 52w Index | 74.3 % | Qtr Profit Var | 111 % | EPS | 31.3 ₹ | Industry PE | 26.5 |
📊 VEDL shows moderate potential for swing trading. The RSI at 41.7 suggests the stock is nearing oversold territory, while the MACD is slightly positive (1.16), indicating early signs of momentum recovery. The stock is trading close to its 50 DMA (674 ₹) and well above its 200 DMA (565 ₹), showing medium-term strength. Valuation is stretched (P/E 51.9 vs industry 26.5), but fundamentals are improving with a sharp turnaround in quarterly profits (33.5 Cr. vs -449 Cr. previously). High dividend yield (6.54%) adds investor appeal, though debt levels (0.71) remain a concern.
💡 Optimal Entry Price: Around 650–660 ₹ (near support zone below 50 DMA).
📈 Exit Strategy if Holding: Consider exiting near 690–700 ₹ (resistance zone above 50 DMA) unless momentum strengthens further.
Positive
- Strong ROE (21.8%) and ROCE (18.5%) show efficient capital use.
- High dividend yield (6.54%) provides attractive returns.
- Quarterly profit turnaround (from -449 Cr. to +33.5 Cr.).
- Stock trading above 200 DMA, showing medium-term strength.
Limitation
- High valuation compared to peers (P/E 51.9 vs industry 26.5).
- Debt-to-equity ratio at 0.71 is relatively high.
- Stock still below 50 DMA, facing short-term resistance.
Company Negative News
- DII holdings reduced (-0.94%), showing weaker domestic institutional support.
- High leverage compared to peers.
Company Positive News
- FII holdings increased (+1.07%), showing renewed foreign investor confidence.
- Quarterly profits improved significantly, reversing prior losses.
- EPS at 31.3 ₹ supports valuation stability.
Industry
- Industry P/E at 26.5 is much lower than VEDL’s, highlighting premium valuation.
- Sector remains cyclical but supported by commodity demand trends.
Conclusion
⚖️ VEDL is showing signs of recovery with improving fundamentals and strong dividend yield, but remains overvalued and faces short-term resistance. A cautious swing trade may be possible if entered near 650–660 ₹ with an exit around 690–700 ₹. Risk management is essential due to high debt and valuation concerns.