WESTLIFE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 2.6

📊 WESTLIFE shows weak technicals and poor profitability, making it a speculative swing trade. Optimal entry is ₹570–₹585. If already held, consider exiting near ₹620–₹640.

📈 Positive

• Volume slightly above 1-week average suggests short-term interest despite broader weakness.
• DII holdings increased by 0.76%, indicating rising domestic institutional support.
• Debt-to-equity ratio (0.00) reflects a clean balance sheet with no leverage risk.

⚠️ Limitation

• MACD (-26.1) and RSI (28.7) signal strong bearish momentum and oversold conditions.
• ROCE (-0.08%) and ROE (0.18%) indicate poor capital efficiency and minimal returns.
• P/E (589) is extremely high compared to industry average (149), suggesting severe overvaluation.
• PEG ratio (9.76) implies expensive pricing relative to growth.
• Dividend yield (0.13%) is negligible for short-term holders.

🚫 Company Negative News

• FII holdings declined by 0.83%, showing reduced foreign investor confidence.
• Quarterly PAT turned negative from ₹14.5 Cr. to -₹0.13 Cr., indicating earnings deterioration.
• Stock has corrected over 34% from its 52-week high of ₹893.

✅ Company Positive News

• Qtr Profit Var of 38.1% suggests potential for earnings recovery despite recent loss.
• Strong brand presence in QSR (Quick Service Restaurant) segment supports long-term potential.

🌐 Industry

• WESTLIFE operates in the food services and QSR industry, which benefits from urban consumption and brand loyalty.
• Industry P/E of 149 reflects high growth expectations and premium valuations.

🧾 Conclusion

• WESTLIFE is a speculative swing trade candidate with weak technicals and poor profitability.
• Optimal entry: ₹570–₹585 (near support and oversold zone).
• Exit target: ₹620–₹640 (near short-term resistance and psychological level).
• Watch for MACD reversal and RSI crossing 35 for confirmation of recovery.

I can help you compare WESTLIFE’s setup with other QSR stocks to identify stronger swing trade opportunities.