BAJAJHFL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.0
| Stock Code | BAJAJHFL | Market Cap | 72,400 Cr. | Current Price | 86.9 ₹ | High / Low | 129 ₹ |
| Stock P/E | 28.2 | Book Value | 27.0 ₹ | Dividend Yield | 0.00 % | ROCE | 8.84 % |
| ROE | 12.1 % | Face Value | 10.0 ₹ | DMA 50 | 86.8 ₹ | DMA 200 | 98.8 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.21 % | PAT Qtr | 669 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 50.6 | MACD | 1.37 | Volume | 52,72,759 | Avg Vol 1Wk | 82,71,640 |
| Low price | 72.6 ₹ | High price | 129 ₹ | PEG Ratio | 1.05 | Debt to equity | 4.60 |
| 52w Index | 25.5 % | Qtr Profit Var | 14.1 % | EPS | 3.07 ₹ | Industry PE | 15.0 |
Analysis: Bajaj Housing Finance shows weak-to-moderate swing trade potential. The RSI (50.6) indicates neutral momentum, while MACD (1.37) suggests only mild bullishness. The current price (₹86.9) is aligned with the 50 DMA (₹86.8) but below the 200 DMA (₹98.8), reflecting short-term stability but long-term weakness. Fundamentals are mixed: ROE (12.1%) is modest, ROCE (8.84%) is low, and debt-to-equity (4.60) is very high, raising caution. Valuation is slightly expensive (P/E 28.2 vs industry 15.0), though PEG ratio (1.05) suggests growth is somewhat justified. Liquidity is decent, but volumes are lower than weekly averages.
Optimal Entry Price: Around ₹82–₹85, closer to support levels.
Exit Strategy (if already holding): Consider profit booking near ₹95–₹100 unless momentum strengthens past ₹100.
✅ Positive
- EPS of ₹3.07 shows improving earnings power.
- Quarterly PAT remained stable (₹669 Cr. vs ₹675 Cr.).
- PEG ratio of 1.05 indicates growth is reasonably priced.
- FII holdings increased slightly (+0.05%).
⚠️ Limitation
- High debt-to-equity ratio (4.60) raises financial risk.
- Low ROCE (8.84%) and ROE (12.1%) indicate weak efficiency.
- P/E (28.2) is significantly higher than industry average (15.0).
- No dividend yield (0.00%), limiting passive returns.
📉 Company Negative News
- DII holdings decreased (-0.21%), showing reduced domestic investor confidence.
- Stock trading below 200 DMA indicates weak long-term trend.
📈 Company Positive News
- Quarterly profit variation (+14.1%) shows steady improvement.
- Strong book value (₹27) supports balance sheet strength.
- Volumes remain healthy, ensuring liquidity despite recent dip.
🏭 Industry
- Industry P/E at 15.0 is much lower, showing Bajaj Housing Finance trades at a premium.
- Financial services sector outlook remains stable, but peers are more reasonably valued.
🔎 Conclusion
Bajaj Housing Finance is a weak swing trade candidate due to high leverage and expensive valuation. Entry near ₹82–₹85 offers better risk-reward, with exit around ₹95–₹100. Traders should remain cautious, as fundamentals do not strongly support current pricing, and technical indicators point to limited upside.