BAJAJ-AUTO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.3
| Stock Code | BAJAJ-AUTO | Market Cap | 2,83,081 Cr. | Current Price | 10,132 ₹ | High / Low | 10,481 ₹ |
| Stock P/E | 30.9 | Book Value | 1,100 ₹ | Dividend Yield | 2.07 % | ROCE | 37.6 % |
| ROE | 28.5 % | Face Value | 10.0 ₹ | DMA 50 | 9,502 ₹ | DMA 200 | 9,195 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.28 % | PAT Qtr | 2,549 Cr. | PAT Prev Qtr | 2,480 Cr. |
| RSI | 65.6 | MACD | 137 | Volume | 7,63,219 | Avg Vol 1Wk | 6,40,070 |
| Low price | 7,556 ₹ | High price | 10,481 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.00 |
| 52w Index | 88.1 % | Qtr Profit Var | 20.9 % | EPS | 327 ₹ | Industry PE | 31.7 |
Analysis: Bajaj Auto shows strong swing trade potential. The RSI (65.6) indicates moderate bullish momentum without being overbought, while MACD (137) confirms positive trend strength. The current price (₹10,132) is comfortably above both the 50 DMA (₹9,502) and 200 DMA (₹9,195), reflecting sustained upward momentum. Fundamentals are solid with high ROCE (37.6%) and ROE (28.5%), zero debt, and consistent profit growth. Valuation is reasonable (P/E 30.9 vs industry 31.7), and PEG ratio (1.59) suggests growth is fairly priced. Liquidity is strong with volumes above average, supporting trade execution.
Optimal Entry Price: Around ₹9,800–₹10,000, closer to the 50 DMA support zone.
Exit Strategy (if already holding): Consider profit booking near ₹10,400–₹10,500 unless momentum continues strongly beyond ₹10,500.
✅ Positive
- High ROCE (37.6%) and ROE (28.5%) reflect strong operational efficiency.
- Zero debt-to-equity ratio ensures financial stability.
- Dividend yield of 2.07% provides steady passive income.
- Quarterly PAT growth (₹2,549 Cr. vs ₹2,480 Cr.) shows consistent earnings strength.
⚠️ Limitation
- RSI at 65.6 indicates nearing overbought territory.
- PEG ratio of 1.59 suggests valuation is slightly stretched relative to growth.
- FII holdings decreased marginally (-0.02%), showing slight foreign investor caution.
📉 Company Negative News
- Minor decline in FII holdings could signal reduced foreign confidence.
- Stock trading near its 52-week high may trigger profit booking.
📈 Company Positive News
- Quarterly profit growth of 20.9% highlights strong performance.
- EPS of ₹327 reflects robust earnings power.
- Strong 52-week return of 88.1% shows investor confidence.
- Trading volumes remain healthy, ensuring liquidity.
🏭 Industry
- Industry P/E at 31.7 is in line with Bajaj Auto’s valuation, showing fair pricing.
- Automobile sector outlook remains positive, supported by demand recovery and exports.
🔎 Conclusion
Bajaj Auto is a strong swing trade candidate with excellent fundamentals and bullish technicals. Entry near ₹9,800–₹10,000 offers a favorable risk-reward setup, with exit around ₹10,400–₹10,500. Traders should monitor RSI levels for signs of overbought conditions, but overall momentum and fundamentals remain supportive.