WELSPUNLIV - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | WELSPUNLIV | Market Cap | 10,857 Cr. | Current Price | 113 ₹ | High / Low | 155 ₹ |
| Stock P/E | 34.3 | Book Value | 42.2 ₹ | Dividend Yield | 1.50 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 126 ₹ | DMA 200 | 130 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 1.85 % | PAT Qtr | -5.33 Cr. | PAT Prev Qtr | 148 Cr. |
| RSI | 37.4 | MACD | -5.49 | Volume | 12,99,542 | Avg Vol 1Wk | 21,90,239 |
| Low price | 105 ₹ | High price | 155 ₹ | PEG Ratio | 3.97 | Debt to equity | 0.41 |
| 52w Index | 16.8 % | Qtr Profit Var | -106 % | EPS | 3.25 ₹ | Industry PE | 20.3 |
📊 WELSPUNLIV shows weak potential for swing trading. The RSI at 37.4 indicates oversold conditions, which could support a short-term bounce. However, the MACD is negative (-5.49), and the stock is trading below both its 50 DMA (126 ₹) and 200 DMA (130 ₹), reflecting bearish momentum. Valuation is stretched (P/E 34.3 vs industry 20.3, PEG 3.97), and fundamentals are modest with ROCE at 13.8% and ROE at 13.2%. Quarterly profits turned negative (-5.33 Cr. vs 148 Cr.), raising concerns. Institutional activity is mixed, with FIIs slightly increasing (+0.06%) and DIIs adding significantly (+1.85%). Overall, this is a risky swing candidate.
💡 Optimal Entry Price: Around 110–115 ₹ (near support zone above 105 ₹).
📈 Exit Strategy if Holding: Consider exiting near 125–130 ₹ (close to 200 DMA resistance) unless momentum strengthens further.
Positive
- ROCE (13.8%) and ROE (13.2%) show moderate efficiency.
- DII holdings increased (+1.85%), showing strong domestic institutional support.
- Dividend yield of 1.50% provides shareholder returns.
Limitation
- High valuation compared to peers (P/E 34.3 vs industry 20.3).
- Quarterly PAT turned negative (-5.33 Cr.).
- Stock trading below DMA 50 and DMA 200, showing bearish technicals.
- Volumes below weekly average, reflecting reduced trader interest.
Company Negative News
- Quarterly profits declined sharply, turning negative.
- Debt-to-equity ratio at 0.41 is relatively high.
Company Positive News
- DII holdings increased significantly (+1.85%).
- Dividend yield of 1.50% supports investor returns.
Industry
- Industry P/E at 20.3 is much lower than WELSPUNLIV’s, highlighting overvaluation.
- Sector remains stable but valuations are stretched for premium players.
Conclusion
⚖️ WELSPUNLIV is financially modest with dividend support but technically weak and facing earnings pressure. While oversold RSI may trigger a short-term bounce, declining profits and high valuation make it risky. Entry near 110–115 ₹ with an exit around 125–130 ₹ is possible, but strict risk management is essential.