AAVAS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | AAVAS | Market Cap | 10,951 Cr. | Current Price | 1,379 ₹ | High / Low | 2,153 ₹ |
| Stock P/E | 17.5 | Book Value | 591 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,296 ₹ | DMA 200 | 1,465 ₹ |
| Chg in FII Hold | -7.98 % | Chg in DII Hold | 7.84 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 164 Cr. |
| RSI | 66.4 | MACD | 50.5 | Volume | 47,939 | Avg Vol 1Wk | 63,353 |
| Low price | 1,050 ₹ | High price | 2,153 ₹ | PEG Ratio | 1.02 | Debt to equity | 3.08 |
| 52w Index | 29.8 % | Qtr Profit Var | 16.1 % | EPS | 79.2 ₹ | Industry PE | 15.0 |
Analysis: AAVAS is trading at ₹1,379, above its 50 DMA (₹1,296) but below its 200 DMA (₹1,465), showing mixed momentum. RSI at 66.4 indicates moderate strength but nearing overbought territory. MACD is strongly positive, suggesting bullish momentum. The PEG ratio of 1.02 shows fair valuation relative to growth. However, debt-to-equity ratio of 3.08 is high, posing financial risk. FII holdings dropped significantly (-7.98%), though DII holdings increased (+7.84%), reflecting domestic support. Overall, the stock has potential for swing trading but with caution due to leverage and investor sentiment.
Optimal Entry Price: ₹1,300–1,320 (near 50 DMA support).
Exit Strategy: If already holding, consider profit booking near ₹1,450–1,470 (close to 200 DMA resistance).
✅ Positive
- EPS of ₹79.2 with steady quarterly profit growth (16.1%).
- ROE at 14.1% shows decent efficiency.
- Price trading above 50 DMA, indicating short-term strength.
- DII holdings increased significantly (+7.84%).
⚠️ Limitation
- High debt-to-equity ratio (3.08) increases financial risk.
- Dividend yield is 0%, limiting passive returns.
- Stock trading below 200 DMA, showing medium-term weakness.
📉 Company Negative News
- Sharp decline in FII holdings (-7.98%), showing reduced foreign investor confidence.
📈 Company Positive News
- PAT increased from ₹164 Cr. to ₹170 Cr. quarter-on-quarter.
- DII holdings rose significantly, reflecting strong domestic institutional support.
🏭 Industry
- Industry PE at 15.0, lower than company’s P/E (17.5), suggesting slight overvaluation.
- Housing finance sector benefits from rising demand in India but faces interest rate sensitivity.
🔎 Conclusion
AAVAS is a moderate candidate for swing trading with short-term bullish momentum supported by technicals and earnings growth. Entry near ₹1,300–1,320 offers a safer risk-reward setup, while profit booking near ₹1,450–1,470 is advisable. Watch debt levels and foreign investor sentiment closely as they pose key risks.