ABSLAMC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📊 Aditya Birla Sun Life AMC (ABSLAMC) shows strong fundamentals with high ROCE (35.5%) and ROE (27.0%), low debt-to-equity (0.02), and a healthy dividend yield (3.06%). Valuation is reasonable with P/E (22.7) below industry average (28.5). Technically, the stock is trading around both 50 DMA (765 ₹) and 200 DMA (767 ₹), with RSI at 65.6 indicating slightly overbought conditions and MACD positive. Quarterly profit declined marginally, but strong liquidity and institutional support make ABSLAMC a good candidate for swing trading.

💡 Optimal Entry Price: Around 750–760 ₹ (near DMA support).

🚪 Exit Strategy: If already holding, consider exiting near 800–820 ₹ resistance or if price falls below 740 ₹ support.

✅ Positive

• 📈 Strong ROCE (35.5%) and ROE (27.0%) highlight excellent operational efficiency.
• 💵 Dividend yield of 3.06% provides attractive shareholder returns.
• 📊 EPS of 33.7 ₹ supports earnings strength.
• 📈 FII holdings increased (+0.66%), reflecting foreign investor confidence.
• 📉 Debt-to-equity ratio of 0.02 shows financial stability.

⚠️ Limitation

• 📉 RSI at 65.6 indicates slightly overbought conditions, limiting immediate upside.
• 📉 Quarterly PAT declined (277 Cr. → 245 Cr.), showing earnings slowdown.
• 📉 PEG ratio of 1.91 suggests growth is relatively expensive.
• 📉 Price near resistance zone (765–767 ₹), requiring caution for entry.

🚨 Company Negative News

• 📉 DII holdings decreased (-0.50%), showing weaker domestic institutional support.
• 📉 Marginal decline in quarterly profits raises short-term caution.

🌟 Company Positive News

• 📈 FII inflows (+0.66%) add support to stock momentum.
• 📊 Dividend yield of 3.06% enhances investor appeal.
• 📈 Strong 52-week performance (58.2%) highlights consistent investor demand.

🏭 Industry

• 📊 Industry PE is 28.5, higher than ABSLAMC’s 22.7, suggesting undervaluation relative to peers.
• 📈 Asset management sector outlook remains positive, supported by rising retail participation in mutual funds.

📝 Conclusion

⚖️ ABSLAMC is fundamentally strong and technically stable, making it a good swing trade candidate. Entry near 750–760 ₹ offers a favorable risk-reward setup, with exit near 800–820 ₹. Risk management is essential given slightly overbought RSI and recent profit slowdown.

I can also prepare a peer comparison of ABSLAMC with HDFC AMC and Nippon Life AMC to highlight relative swing trade opportunities. Would you like me to do that?