BAJAJFINSV - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📈 Bajaj Finserv shows strong fundamentals and improving technicals, but valuation concerns limit upside. Entry near ₹2,050 is optimal. If already held, consider exiting around ₹2,180–₹2,195.

📈 Positive

• 📊 ROCE of 27.4% and ROE of 20.9% reflect excellent capital efficiency.
• 📈 MACD at 18.7 and RSI at 47.6 suggest bullish momentum building.
• 📈 Trading above DMA 50 (₹2,058) and DMA 200 (₹1,958) confirms technical strength.
• 📉 Debt-to-equity ratio of 0.00 shows a clean balance sheet.
• 📈 DII holding increased by 0.40%, signaling domestic institutional confidence.

⚠️ Limitation

• 💸 Stock P/E of 264 vs industry average of 20.9 indicates extreme overvaluation.
• 📉 PEG ratio of 4.60 suggests expensive growth expectations.
• 📉 Quarterly profit variation of -47.9% raises concerns about earnings consistency.
• 📉 EPS of ₹7.86 is low relative to price and sector peers.
• 📉 FII holding declined by 0.29%, showing cautious foreign sentiment.

📉 Company Negative News

• 📉 Analysts flagged concerns over valuation and earnings volatility despite strong long-term growth.

📈 Company Positive News

• 📈 Bajaj Finserv reported a sharp rebound in PAT from ₹7.57 Cr. to ₹330 Cr., indicating recovery.
• 📈 Strong performance in insurance and lending subsidiaries continues to support group profitability.

🏦 Industry

• 🏦 Financial services sector remains resilient amid rising credit demand and digital transformation.
• 📊 Industry P/E of 20.9 suggests moderate valuation across peers.

✅ Conclusion

• 📈 Bajaj Finserv is a moderate swing trade candidate with strong fundamentals but valuation headwinds.
• 📉 Optimal entry price: ₹2,050–₹2,060 (near DMA 50 and support).
• 📈 Exit target: ₹2,180–₹2,195 (near recent highs and resistance).
• 📌 Watch for RSI crossing 50 and volume surge for confirmation before entry.

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