⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

ABREL - Swing Trade Analysis with AI Signals

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Rating: 2.2

Last Updated Time : 05 Feb 26, 02:09 am

Swing Trade Rating: 2.2

Stock Code ABREL Market Cap 13,732 Cr. Current Price 1,223 ₹ High / Low 2,538 ₹
Stock P/E 92.2 Book Value 401 ₹ Dividend Yield 0.16 % ROCE 4.25 %
ROE 3.84 % Face Value 10.0 ₹ DMA 50 1,525 ₹ DMA 200 1,797 ₹
Chg in FII Hold -0.15 % Chg in DII Hold 0.47 % PAT Qtr 31.4 Cr. PAT Prev Qtr 24.0 Cr.
RSI 25.0 MACD -114 Volume 4,45,122 Avg Vol 1Wk 4,02,606
Low price 1,185 ₹ High price 2,538 ₹ PEG Ratio -13.9 Debt to equity 0.89
52w Index 2.83 % Qtr Profit Var 25.1 % EPS 8.04 ₹ Industry PE 18.8

📊 ABREL shows weak fundamentals and technicals for swing trading. The stock is trading well below both 50 DMA (1,525 ₹) and 200 DMA (1,797 ₹), indicating bearish momentum. RSI at 25.0 suggests oversold conditions, but MACD (-114) confirms strong downward pressure. Valuation is stretched with a P/E of 92.2 compared to industry PE of 18.8, while profitability ratios (ROCE 4.25%, ROE 3.84%) are poor. Debt-to-equity ratio (0.89) is moderate, but earnings volatility and low institutional confidence weigh heavily. Overall, it is a weak candidate for swing trading.

💡 Optimal Entry Price: Around 1,190–1,210 ₹ (near support zone above 1,185 ₹).

🚪 Exit Strategy (if already holding): Consider exiting near 1,300–1,350 ₹ short-term resistance or if price falls below 1,185 ₹ support.

✅ Positive

  • Quarterly PAT improved from 24.0 Cr. to 31.4 Cr. (+25.1%).
  • DII holdings increased (+0.47%), showing some domestic support.
  • Book value of 401 ₹ provides a cushion compared to current price.
  • RSI at 25.0 indicates oversold conditions, which could trigger a short-term bounce.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
  • Extremely high P/E ratio (92.2) compared to industry PE (18.8).
  • Low ROCE (4.25%) and ROE (3.84%) reflect poor profitability.
  • PEG ratio (-13.9) highlights negative growth prospects.
  • Dividend yield is negligible (0.16%), offering little income support.

📉 Company Negative News

  • FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
  • Stock trading near bottom of 52-week index (2.83%), reflecting severe underperformance.

📈 Company Positive News

  • Quarterly profit growth (+25.1%) indicates short-term improvement.
  • DII inflows (+0.47%) provide some domestic institutional support.

🏭 Industry

  • Industry PE is 18.8, far lower than company’s 92.2, highlighting overvaluation.
  • Sector outlook remains stable, but company-specific profitability is weak.

🔎 Conclusion

ABREL is overvalued with weak profitability and bearish technical signals, making it a poor swing trade candidate. Entry near 1,190–1,210 ₹ is possible for speculative traders, but strict stop-loss below 1,185 ₹ is essential. For holders, exit near 1,300–1,350 ₹ resistance is advisable unless earnings momentum improves significantly.

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