BAJAJHFL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📉 Bajaj Housing Finance shows stable fundamentals but weak technical momentum and valuation concerns. Entry near ₹108 is optimal. If already held, consider exiting around ₹120–₹125.

📈 Positive

• 📊 ROE of 13.5% and ROCE of 9.55% indicate decent profitability.
• 📈 Quarterly PAT stable at ₹583 Cr. vs ₹587 Cr., showing earnings consistency.
• 📉 Debt-to-equity ratio of 4.11 is typical for housing finance firms and manageable.
• 📈 PEG ratio of 0.90 suggests fair growth relative to valuation.
• 📈 EPS of ₹2.72 supports earnings visibility.

⚠️ Limitation

• 📉 RSI at 44.7 and MACD at -0.46 indicate weak momentum.
• 📉 Trading below DMA 50 and DMA 200 suggests bearish trend.
• 💸 Stock P/E of 40.3 vs industry average of 17.7 implies overvaluation.
• 📉 Volume below average (24.4L vs 35.1L), showing reduced trading interest.
• 📉 Dividend yield of 0.00% offers no passive income.

📉 Company Negative News

• 📉 FII holding declined by 0.13% and DII by 0.05%, indicating cautious institutional sentiment.

📈 Company Positive News

• 📈 Bajaj Housing Finance maintained strong quarterly performance with 20.9% profit growth YoY.
• 📈 Analysts expect long-term growth driven by rising housing demand and digital lending expansion.

🏠 Industry

• 🏠 Housing finance sector remains resilient amid rising urbanization and government support for affordable housing.
• 📊 Industry P/E of 17.7 reflects conservative valuation norms.

✅ Conclusion

• 📉 Bajaj Housing Finance is a moderate swing trade candidate with stable fundamentals but weak technicals.
• 📉 Optimal entry price: ₹108–₹110 (near support and below DMA 50).
• 📈 Exit target: ₹120–₹125 (near DMA 200 and resistance zone).
• 📌 Watch for MACD crossover and RSI above 50 before entry.

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