WESTLIFE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.6

📊 Analysis Summary

Westlife Foodworld Ltd (WESTLIFE) shows weak fundamentals and mixed technicals, making it a risky candidate for swing trading. While the MACD is positive and the RSI is neutral, the stock suffers from poor profitability, extremely high valuation, and declining earnings — all red flags for short-term trades.

✅ Positives

MACD: +7.41

Bullish crossover — short-term momentum may be building.

RSI: 50.8

Neutral zone — potential for upward move if volume picks up.

DII Holding ↑ 1.70%

Strong domestic institutional interest — supportive sentiment.

Price near DMA 50 & 200

Trading around ₹744–₹750 — possible base formation.

⚠️ Negatives

Valuation Concerns

P/E: 1,178 vs Industry PE: 189 — extremely overvalued.

PEG Ratio: 25.2 — unjustifiable premium.

Profitability

ROCE: 6.71% & ROE: 2.04% — very weak.

EPS: ₹0.65 — low earnings base.

Earnings Decline

PAT Qtr: ₹1.23 Cr. vs ₹1.52 Cr. — down 62.2%.

Qtr Profit Var: –62.2% — sharp drop.

Volume Weakness

Current volume (1.21L) < Avg volume (2.21L) — waning interest.

Debt Load

Debt to Equity: 2.69 — highly leveraged.

FII Holding ↓ 1.62%

Significant foreign exit — bearish signal.

🎯 Optimal Entry Price

Entry Zone: ₹740–₹750

Near DMA support — only for speculative short-term bounce.

Confirmation Needed

Sustained MACD strength and RSI > 55 with volume spike.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹790–₹810

Short-term resistance zone — lock profits quickly.

Stop Loss: ₹725

Below DMA 50 — risk management essential.

Would you like to explore consumer sector stocks with stronger earnings growth and lower debt for safer swing trade setups?

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