WESTLIFE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | WESTLIFE | Market Cap | 7,521 Cr. | Current Price | 483 ₹ | High / Low | 893 ₹ |
| Stock P/E | 483 | Book Value | 32.7 ₹ | Dividend Yield | 0.15 % | ROCE | -0.08 % |
| ROE | 0.18 % | Face Value | 2.00 ₹ | DMA 50 | 552 ₹ | DMA 200 | 646 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 0.71 % | PAT Qtr | -0.13 Cr. | PAT Prev Qtr | 14.5 Cr. |
| RSI | 31.7 | MACD | -14.6 | Volume | 1,57,136 | Avg Vol 1Wk | 1,55,152 |
| Low price | 482 ₹ | High price | 893 ₹ | PEG Ratio | 8.02 | Debt to equity | 0.00 |
| 52w Index | 0.22 % | Qtr Profit Var | 38.1 % | EPS | 1.00 ₹ | Industry PE | 116 |
📊 WESTLIFE shows weak fundamentals with extremely high P/E (483 vs industry PE 116), negative ROCE (-0.08%), and negligible ROE (0.18%). The RSI at 31.7 indicates oversold territory, while MACD at -14.6 reflects bearish momentum. Despite slight institutional support and strong sector demand, the company’s recent quarterly loss and expensive valuations make it a risky candidate for swing trading.
💡 Optimal Entry Price: Around 470–480 ₹ (near support and 52-week low).
🚪 Exit Strategy: If already holding, consider exiting near 540–560 ₹ (resistance zone around 50 DMA at 552 ₹).
✅ Positive
- 📈 DII holding increased (+0.71%), showing domestic institutional support.
- 💰 Debt-to-equity ratio of 0.00 ensures no leverage risk.
- 📉 RSI at 31.7 suggests oversold territory, potential rebound opportunity.
- 📊 EPS at 1.00 ₹ provides a base for valuation despite weakness.
⚠️ Limitation
- 📉 Extremely high P/E (483) compared to industry PE (116), indicating severe overvaluation.
- 📊 Negative ROCE (-0.08%) and low ROE (0.18%) highlight poor efficiency.
- 📉 Quarterly PAT decline from 14.5 Cr. to -0.13 Cr. shows earnings weakness.
- 📊 MACD negative (-14.6) reflects bearish momentum.
- 📉 PEG ratio of 8.02 highlights expensive growth expectations.
- 📊 52-week index at 0.22% suggests minimal upside captured so far.
🚨 Company Negative News
- 📉 FII holding decreased (-1.14%), showing reduced foreign investor confidence.
- 📉 Quarterly loss highlights operational challenges.
🌟 Company Positive News
- 📈 DII holding increased (+0.71%), reflecting domestic institutional support.
🏭 Industry
- 📊 Industry PE at 116 suggests sector is valued high, but WESTLIFE is excessively expensive.
- 🍔 Quick-service restaurant industry remains resilient with strong consumer demand, supporting long-term fundamentals.
📝 Conclusion
WESTLIFE is a high-risk swing trade candidate with weak fundamentals and expensive valuations. While oversold technicals may offer a short-term rebound, entry near 470–480 ₹ and exit around 540–560 ₹ is advisable for traders. Long-term investors should remain cautious due to poor profitability and extreme valuation levels.