WELSPUNLIV - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | WELSPUNLIV | Market Cap | 15,608 Cr. | Current Price | 163 ₹ | High / Low | 166 ₹ |
| Stock P/E | 62.0 | Book Value | 42.5 ₹ | Dividend Yield | 0.06 % | ROCE | 6.63 % |
| ROE | 6.31 % | Face Value | 1.00 ₹ | DMA 50 | 137 ₹ | DMA 200 | 132 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.75 % | PAT Qtr | 27.3 Cr. | PAT Prev Qtr | -5.33 Cr. |
| RSI | 75.4 | MACD | 3.94 | Volume | 2,84,06,683 | Avg Vol 1Wk | 70,45,927 |
| Low price | 107 ₹ | High price | 166 ₹ | PEG Ratio | 2.11 | Debt to equity | 0.29 |
| 52w Index | 95.6 % | Qtr Profit Var | -72.2 % | EPS | 2.51 ₹ | Industry PE | 25.5 |
📊 WELSPUNLIV shows moderate fundamentals with strong short-term momentum but stretched valuations. The RSI at 75.4 indicates overbought conditions, while the MACD at 3.94 confirms bullishness. Current price (163 ₹) is well above both the 50DMA (137 ₹) and 200DMA (132 ₹), reflecting strong upward momentum. However, ROCE (6.63%) and ROE (6.31%) are weak, and the P/E of 62.0 vs industry average of 25.5 highlights overvaluation. Quarterly PAT turned positive (27.3 Cr. vs -5.33 Cr.), but profit variation (-72.2%) raises caution.
💡 Optimal Entry Price: Around 150–155 ₹ (near support zone close to DMA levels).
📈 Exit Strategy if Holding: Consider booking profits near 165–170 ₹ resistance zone, or trail stop-loss below 148 ₹.
Positive
- ✅ Price above both 50DMA and 200DMA confirms bullish trend.
- ✅ EPS of 2.51 ₹ supports valuation base.
- ✅ Quarterly PAT turned positive (27.3 Cr. vs -5.33 Cr.).
- ✅ DII holdings increased (+0.75%), showing domestic institutional support.
- ✅ Strong trading volume (2.84 Cr. vs avg 70.4 lakh) indicates active participation.
Limitation
- ⚠️ High P/E ratio (62.0 vs industry 25.5) suggests overvaluation.
- ⚠️ Weak ROCE (6.63%) and ROE (6.31%).
- ⚠️ RSI at 75.4 indicates overbought territory.
- ⚠️ PEG ratio of 2.11 shows growth is overpriced.
- ⚠️ Dividend yield of 0.06% is negligible.
Company Negative News
- 📉 Profit variation (-72.2%) raises caution despite positive PAT.
- 📉 FII holdings declined (-0.04%).
Company Positive News
- 📈 Quarterly PAT turned positive after previous loss.
- 📈 DII holdings increased (+0.75%), showing domestic confidence.
Industry
- 🏭 Industry P/E at 25.5 is much lower, highlighting WELSPUNLIV’s premium valuation.
- 🏭 Sector outlook remains steady with moderate demand drivers.
Conclusion
🔎 WELSPUNLIV is a speculative swing trade candidate with strong short-term momentum but weak fundamentals and stretched valuations. Entry near 150–155 ₹ offers limited risk-reward, while exits should be targeted around 165–170 ₹. Traders should remain cautious due to overbought RSI and weak efficiency metrics, maintaining strict stop-loss discipline.
Would you like me to expand this into a peer benchmarking overlay with sector comparisons, or refine it into an intraday momentum setup for sharper entry/exit timing?