AADHARHFC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.5

📊 Aadhar Housing Finance shows moderate fundamentals with decent ROE (16.9%) and EPS (22.9 ₹), but ROCE is modest (11.4%) and debt-to-equity is relatively high (2.56). Technically, the stock is hovering near its 50 DMA (494 ₹) and 200 DMA (478 ₹), with RSI at 41.9 indicating weak momentum and MACD negative. Valuation is slightly above industry average, but quarterly profit growth (+17%) adds support. This makes AADHARHFC a fair candidate for swing trading with cautious entry near support levels.

💡 Optimal Entry Price: Around 475–485 ₹ (near 200 DMA support).

🚪 Exit Strategy: If already holding, consider exiting near 530–540 ₹ resistance or if price falls below 470 ₹ support.

✅ Positive

• 📈 ROE of 16.9% indicates healthy profitability.
• 💵 EPS of 22.9 ₹ supports earnings strength.
• 📊 Quarterly PAT growth (+17%) shows improving performance (237 Cr. → 266 Cr.).
• 📈 FII holdings increased (+0.53%), reflecting foreign investor confidence.
• 📉 Price trading close to 200 DMA (478 ₹), offering a potential support zone.

⚠️ Limitation

• 📉 Debt-to-equity ratio of 2.56 is relatively high, raising financial risk.
• 📉 RSI at 41.9 indicates weak momentum.
• 📉 MACD negative (-3.23), confirming bearish undertone.
• 📉 Dividend yield of 0.00% offers no income return.

🚨 Company Negative News

• 📉 DII holdings decreased (-0.18%), showing reduced domestic institutional interest.
• 📉 Trading volume (1.9 lakh vs avg 2.3 lakh) is lower, indicating reduced liquidity.

🌟 Company Positive News

• 📈 PAT growth quarter-on-quarter highlights operational improvement.
• 📊 FII inflows (+0.53%) add support to stock momentum.
• 📈 Strong 52-week performance (70.7%) shows consistent investor demand.

🏭 Industry

• 📊 Industry PE is 18.0, lower than AADHARHFC’s 21.4, suggesting modest premium valuation.
• 📈 Housing finance sector outlook remains positive, supported by demand for affordable housing and government initiatives.

📝 Conclusion

⚖️ Aadhar Housing Finance is a moderately strong candidate for swing trading with improving profitability and foreign investor support. Entry near 475–485 ₹ offers a favorable risk-reward setup, with exit near 530–540 ₹. However, high debt levels and weak technical indicators require strict risk management.

I can also prepare a peer comparison of Aadhar Housing Finance with LIC Housing Finance and PNB Housing Finance to highlight relative swing trade opportunities. Would you like me to do that?