AAVAS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.0
| Stock Code | AAVAS | Market Cap | 11,243 Cr. | Current Price | 1,421 ₹ | High / Low | 2,238 ₹ |
| Stock P/E | 18.6 | Book Value | 591 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,489 ₹ | DMA 200 | 1,626 ₹ |
| Chg in FII Hold | -1.16 % | Chg in DII Hold | 0.17 % | PAT Qtr | 164 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 40.0 | MACD | -11.7 | Volume | 92,034 | Avg Vol 1Wk | 1,65,836 |
| Low price | 1,351 ₹ | High price | 2,238 ₹ | PEG Ratio | 1.09 | Debt to equity | 3.08 |
| 52w Index | 7.87 % | Qtr Profit Var | 10.8 % | EPS | 76.2 ₹ | Industry PE | 16.4 |
📊 AAVAS presents a cautious outlook for swing trading. Fundamentals are moderate with ROE (14.1%) and quarterly profit growth (+10.8%), but ROCE (10.1%) is weak and debt-to-equity (3.08) is high, raising leverage concerns. Valuation (P/E 18.6 vs industry 16.4) is slightly premium but not excessive. Technically, the stock is trading below both 50 DMA (1,489 ₹) and 200 DMA (1,626 ₹), showing bearish momentum. RSI (40.0) suggests oversold conditions, while MACD (-11.7) indicates continued weakness. This makes AAVAS a risky candidate for swing trading, though short-term recovery opportunities exist near support levels.
✅ Optimal Entry Price: Around 1,360–1,380 ₹ (near strong support zone)
🚪 Exit Strategy if Holding: Consider exiting near 1,500–1,520 ₹ resistance zone or if price falls below 1,350 ₹ support.
Positive
- Quarterly PAT increased from 139 Cr. to 164 Cr. (+10.8%).
- ROE of 14.1% reflects decent profitability.
- PEG ratio of 1.09 suggests valuation is aligned with growth.
- DII holdings increased (+0.17%), showing domestic institutional support.
Limitation
- High debt-to-equity ratio (3.08) raises financial risk.
- ROCE (10.1%) is relatively weak compared to peers.
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- Trading volume (92k) is lower than weekly average (166k), showing weak participation.
Company Negative News
- FII holdings decreased (-1.16%), showing reduced foreign investor confidence.
- RSI (40.0) and MACD (-11.7) indicate weak short-term momentum.
- No dividend yield, limiting shareholder returns.
Company Positive News
- EPS of 76.2 ₹ reflects a solid earnings base.
- Quarterly profit growth highlights operational improvement.
Industry
- Industry P/E is 16.4, slightly lower than AAVAS’s 18.6, showing modest premium valuation.
- Housing finance sector outlook remains positive with rising demand for credit.
Conclusion
⚠️ AAVAS is a moderately weak candidate for swing trading due to high leverage and bearish technicals. Entry near 1,360–1,380 ₹ may provide limited upside, but risk remains high. Exit near 1,500–1,520 ₹ or on breakdown below 1,350 ₹. Conservative traders should wait for a clear trend reversal before entering.