AUBANK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.3

📊 AUBANK shows strong technical momentum with price trading above both 50 DMA and 200 DMA, RSI at 67.8 indicating near-overbought conditions, and MACD positive. Fundamentals are mixed — while ROE is decent at 14.2%, ROCE is modest at 8.4%, and debt-to-equity is very high (7.87). Valuation is stretched with a P/E of 33.8 compared to industry average of 23.3. Institutional activity shows divergence, with FII holdings decreasing but DII holdings increasing. This makes AUBANK a moderate candidate for swing trading, but risk management is crucial.

💡 Optimal Entry Price: Around 950–960 ₹ (near short-term support).

🚪 Exit Strategy: If already holding, consider exiting near 1,000–1,010 ₹ resistance or if price falls below 940 ₹ support.

✅ Positive

• 📈 Price trading above 50 DMA (904 ₹) and 200 DMA (779 ₹), confirming bullish trend.
• 💵 Strong ROE (14.2%) supports profitability.
• 📊 EPS of 29.2 ₹ provides earnings strength.
• 📈 DII holdings increased (+3.05%), showing domestic institutional confidence.
• 📉 High trading liquidity with volume ~15.7 lakh shares.

⚠️ Limitation

• 📉 High debt-to-equity ratio (7.87), raising financial risk.
• 📉 P/E of 33.8 is higher than industry average (23.3), suggesting overvaluation.
• 📉 Dividend yield of 0.10% offers negligible income return.
• 📉 RSI at 67.8 indicates near-overbought conditions, limiting upside potential.

🚨 Company Negative News

• 📉 Quarterly profit declined slightly (581 Cr. → 561 Cr.), showing earnings slowdown.
• 📉 FII holdings decreased (-3.18%), reflecting reduced foreign investor confidence.

🌟 Company Positive News

• 📈 Strong 52-week performance (95.7%) highlights consistent investor demand.
• 📊 EPS and profitability remain healthy despite modest quarterly decline.
• 📈 DII buying (+3.05%) adds support to stock momentum.

🏭 Industry

• 📊 Industry PE is 23.3, lower than AUBANK’s 33.8, suggesting premium valuation.
• 📈 Banking sector outlook remains positive, supported by credit growth and retail expansion.

📝 Conclusion

⚖️ AUBANK is technically strong and supported by domestic institutions, making it a fair swing trade candidate. Entry near 950–960 ₹ with exit near 1,000–1,010 ₹ offers a reasonable setup. However, high debt levels and stretched valuation require strict risk management.

I can also prepare a comparison of AUBANK with peers like Bandhan Bank and RBL Bank to highlight relative swing trade opportunities. Would you like me to do that?