BAJAJ-AUTO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | BAJAJ-AUTO | Market Cap | 2,81,358 Cr. | Current Price | 10,066 ₹ | High / Low | 10,835 ₹ |
| Stock P/E | 28.6 | Book Value | 1,251 ₹ | Dividend Yield | 1.49 % | ROCE | 38.6 % |
| ROE | 29.3 % | Face Value | 10.0 ₹ | DMA 50 | 10,063 ₹ | DMA 200 | 9,508 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.28 % | PAT Qtr | 2,718 Cr. | PAT Prev Qtr | 2,549 Cr. |
| RSI | 45.8 | MACD | -45.1 | Volume | 7,74,154 | Avg Vol 1Wk | 3,90,950 |
| Low price | 7,858 ₹ | High price | 10,835 ₹ | PEG Ratio | 1.36 | Debt to equity | 0.00 |
| 52w Index | 74.2 % | Qtr Profit Var | 32.6 % | EPS | 352 ₹ | Industry PE | 37.8 |
BAJAJ-AUTO shows good potential for swing trading. The valuation is reasonable with a P/E of 28.6 compared to the industry average of 37.8. Fundamentals are strong: ROCE at 38.6% and ROE at 29.3% indicate excellent efficiency, while debt-to-equity is 0.00, reflecting a debt-free balance sheet. Technical indicators are mixed: RSI at 45.8 suggests mild bearishness, and MACD at -45.1 indicates negative momentum. The stock is trading near its 50 DMA (10,063 ₹) and above its 200 DMA (9,508 ₹), showing long-term strength but short-term weakness. PAT growth (2,718 Cr vs 2,549 Cr) is encouraging, and the PEG ratio (1.36) suggests valuation is fair relative to growth. Volume is strong, reflecting active participation.
🔑 Optimal Entry Price: 9,900–10,000 ₹ (near 200 DMA support).
📤 Exit Strategy if Holding: Consider exiting near 10,700–10,800 ₹ resistance unless momentum improves.
✅ Positive
- 📈 Strong ROCE (38.6%) and ROE (29.3%).
- 📊 Debt-free balance sheet ensures financial stability.
- 📈 PAT growth (2,718 Cr vs 2,549 Cr) shows earnings strength.
- 📉 DII holdings increased (+0.28%), showing domestic institutional confidence.
- 📊 EPS at 352 ₹ indicates solid earnings base.
⚠️ Limitation
- 📉 RSI and MACD show weak short-term momentum.
- 📉 Dividend yield (1.49%) is modest compared to peers.
- 📊 FII holdings decreased slightly (-0.02%), showing reduced foreign interest.
📰 Company Negative News
- 📉 Technical weakness with RSI below 50 and MACD bearish.
- ⚠️ Slight decline in foreign investor confidence.
🌟 Company Positive News
- 📈 Strong quarterly profit growth (+32.6%).
- 📊 EPS remains robust at 352 ₹.
- 📉 Debt-free structure supports resilience.
- 📈 Stock trading above long-term DMA levels shows strength.
🏭 Industry
- 📊 Industry P/E at 37.8, higher than BAJAJ-AUTO’s 28.6, showing relative undervaluation.
- 📈 Auto sector benefits from rising demand and exports.
- ⚠️ Competitive pressures may limit margin expansion.
📌 Conclusion
BAJAJ-AUTO is a moderately strong swing trade candidate. Entry is best near 9,900–10,000 ₹ with cautious exit around 10,700–10,800 ₹. Fundamentals are strong and valuation is fair, but weak technicals suggest limited short-term upside. Suitable for traders seeking balanced opportunities with strict stop-loss management.