WELSPUNLIV - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.7
| Stock Code | WELSPUNLIV | Market Cap | 12,425 Cr. | Current Price | 129 ₹ | High / Low | 155 ₹ |
| Stock P/E | 39.2 | Book Value | 42.2 ₹ | Dividend Yield | 1.31 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 125 ₹ | DMA 200 | 129 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.75 % | PAT Qtr | -5.33 Cr. | PAT Prev Qtr | 148 Cr. |
| RSI | 56.7 | MACD | 2.88 | Volume | 9,51,631 | Avg Vol 1Wk | 9,93,785 |
| Low price | 107 ₹ | High price | 155 ₹ | PEG Ratio | 4.54 | Debt to equity | 0.41 |
| 52w Index | 47.1 % | Qtr Profit Var | -106 % | EPS | 3.25 ₹ | Industry PE | 19.2 |
The stock has moderate fundamentals with ROCE at 13.8% and ROE at 13.2%, supported by a dividend yield of 1.31%. However, valuations are stretched (P/E 39.2 vs Industry P/E 19.2, PEG 4.54), and the latest quarterly performance is weak (PAT -5.33 Cr vs 148 Cr). Technical indicators (RSI 56.7, MACD positive) suggest neutral momentum, but the earnings decline makes this a risky swing trade candidate.
🎯 Optimal Entry Price
Entry is favorable near 120–122 ₹ (close to 50 DMA support). Current price of 129 ₹ is slightly above support but not ideal for fresh entry.
📤 Exit Strategy
If already holding, consider booking profits near 140–145 ₹. A strict stop-loss around 120 ₹ is advisable to protect downside risk.
✅ Positive
- Moderate ROCE (13.8%) and ROE (13.2%).
- Dividend yield of 1.31% provides shareholder return.
- Stable institutional support (DII +0.75%).
⚠️ Limitation
- High valuation compared to industry peers (P/E 39.2 vs 19.2).
- Quarterly loss reported (PAT -5.33 Cr).
- Debt-to-equity ratio at 0.41, moderately leveraged.
📰 Company Negative News
- Sharp decline in quarterly profits (-106% variation).
- Weak EPS (3.25 ₹).
🌟 Company Positive News
- Dividend yield supports investor confidence.
- Technical indicators show neutral to positive momentum (MACD positive).
🏭 Industry
- Industry P/E at 19.2, much lower than company’s 39.2, suggesting overvaluation.
- Sector growth remains steady, but valuations are stretched.
📌 Conclusion
The stock is fundamentally weak due to recent losses and overvaluation, making it a cautious candidate for swing trading. Entry near 120–122 ₹ is optimal, while profit booking around 140–145 ₹ is advisable. Strict risk management is essential.