BAJAJ-AUTO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | BAJAJ-AUTO | Market Cap | 2,47,976 Cr. | Current Price | 8,868 ₹ | High / Low | 10,187 ₹ |
| Stock P/E | 27.0 | Book Value | 1,100 ₹ | Dividend Yield | 2.37 % | ROCE | 37.6 % |
| ROE | 28.5 % | Face Value | 10.0 ₹ | DMA 50 | 9,473 ₹ | DMA 200 | 9,118 ₹ |
| Chg in FII Hold | -0.82 % | Chg in DII Hold | 1.29 % | PAT Qtr | 2,549 Cr. | PAT Prev Qtr | 2,480 Cr. |
| RSI | 36.7 | MACD | -173 | Volume | 2,96,536 | Avg Vol 1Wk | 3,69,691 |
| Low price | 7,088 ₹ | High price | 10,187 ₹ | PEG Ratio | 1.39 | Debt to equity | 0.00 |
| 52w Index | 57.4 % | Qtr Profit Var | 20.9 % | EPS | 327 ₹ | Industry PE | 27.7 |
📊 The stock BAJAJ-AUTO shows moderate potential for swing trading. Current price (₹8,868) is below both 50 DMA (₹9,473) and 200 DMA (₹9,118), indicating weak momentum. RSI at 36.7 suggests the stock is nearing oversold territory, while MACD is strongly negative (-173), confirming bearish sentiment. Valuation is fair with P/E of 27.0 compared to industry average of 27.7, and PEG ratio of 1.39 indicates reasonable growth valuation. Fundamentals remain strong with robust ROCE (37.6%) and ROE (28.5%), but technical weakness limits short-term upside.
💡 Optimal Entry Price: Around ₹8,600–8,700 if RSI dips closer to 30 and price stabilizes.
📉 Exit Strategy (if already holding): Consider exiting near ₹9,400–9,500 resistance zone unless strong reversal signals appear.
✅ Positive
- Strong ROCE (37.6%) and ROE (28.5%) indicate excellent capital efficiency.
- Debt-free company (Debt-to-equity 0.00).
- Dividend yield of 2.37% provides attractive investor return.
- Quarterly PAT improved from ₹2,480 Cr. to ₹2,549 Cr.
⚠️ Limitation
- Price trading below DMA levels shows weak technical momentum.
- RSI near oversold but MACD strongly negative, limiting short-term upside.
- Volume below weekly average, showing reduced participation.
📉 Company Negative News
- FII holding decreased (-0.82%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased (+1.29%), showing strong domestic institutional support.
- Quarterly profit variance (+20.9%) indicates improving performance.
- EPS of ₹327 reflects strong earnings base.
🏭 Industry
- Industry P/E at 27.7 shows BAJAJ-AUTO trades in line with peers.
- Automobile sector remains cyclical but supported by strong demand outlook.
🔎 Conclusion
BAJAJ-AUTO is fundamentally strong with attractive dividend yield and robust profitability, but currently weak in technical momentum. It can be considered for swing trading with entry near ₹8,600–8,700 and exit near ₹9,400–9,500. Caution is advised due to bearish technical indicators, but oversold RSI may offer a rebound opportunity.