BAJAJ-AUTO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📈 Bajaj Auto is a solid swing trade candidate with strong fundamentals and improving technicals. Entry near ₹8,700 is optimal. If already held, consider exiting around ₹9,800–₹10,000.

📈 Positive

• 📊 ROCE of 37.6% and ROE of 28.5% reflect excellent capital efficiency.
• 💰 EPS of ₹296 and Dividend Yield of 2.40% offer strong returns.
• 📉 Debt-to-equity ratio of 0.03 shows minimal leverage and financial strength.
• 📈 Quarterly PAT rose from ₹2,049 Cr. to ₹2,096 Cr., maintaining earnings momentum.
• 📈 DII holding increased by 0.77%, signaling domestic institutional confidence.

⚠️ Limitation

• 📉 RSI at 38.6 and MACD at 0.93 suggest weak short-term momentum.
• 📉 Trading below DMA 50 (₹8,881) indicates near-term resistance.
• 💸 Stock P/E of 28.9 is below industry average (39.3), but PEG ratio of 1.49 implies moderate growth expectations.
• 📉 FII holding declined by 0.64%, showing cautious foreign sentiment.

📉 Company Negative News

• 📉 Citi maintained a ‘SELL’ rating, citing rising competition in the 125cc segment and margin pressure

  ET Now

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📈 Company Positive News

• 📈 Bajaj Auto reported a 163% YoY jump in quarterly profit, driven by strong exports and new launches

  kotaksecurities.com

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• 📈 The stock has delivered over 212% returns in the past five years, showing long-term strength

  The Economic Times

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🚗 Industry

• 🚗 Auto sector is facing mixed momentum, with exports performing well but domestic sales under pressure

  Goodreturns

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• 📊 Industry P/E of 39.3 reflects premium valuation across leading auto players.

✅ Conclusion

• 📈 Bajaj Auto is a strong swing trade candidate with robust fundamentals and improving technicals.
• 📉 Optimal entry price: ₹8,700–₹8,750 (near support and DMA 200).
• 📈 Exit target: ₹9,800–₹10,000 (near recent highs and resistance).
• 📌 Watch for RSI crossing 45 and MACD strengthening before entry.

Sources

Goodreturns

+3

I can chart Bajaj Auto’s RSI and MACD trends to visualize its momentum setup—just say the word.