BAJFINANCE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 Bajaj Finance shows strong momentum, solid fundamentals, and favorable technical indicators. Entry near ₹1,030 is optimal. If already held, consider exiting around ₹1,090–₹1,100.

📈 Positive

• 📊 ROE of 18.5% and ROCE of 11.5% indicate healthy profitability.
• 📈 MACD at 16.0 and RSI at 56.8 suggest bullish momentum.
• 📈 Trading above DMA 50 (₹1,011) and DMA 200 (₹913) confirms upward trend.
• 💰 EPS of ₹28.0 and Dividend Yield of 0.42% offer decent returns.
• 📈 Quarterly PAT increased from ₹3,940 Cr. to ₹4,133 Cr. (↑4.9%).

⚠️ Limitation

• 💸 Stock P/E of 42.6 vs industry average of 22.6 suggests premium valuation.
• 📉 Debt-to-equity ratio of 3.13 indicates high leverage typical of NBFCs.
• 📉 DII holding declined by 0.13%, showing cautious domestic sentiment.
• 📉 Book value of ₹142 is low relative to current price, indicating stretched valuation.

📉 Company Negative News

• 📉 Analysts flagged concerns over rising cost of funds and competitive pressure in consumer lending.

📈 Company Positive News

• 📈 Bajaj Finance reported 21.5% quarterly profit growth, driven by strong loan disbursements and digital expansion.
• 📈 FII holding increased by 0.26%, reflecting foreign investor confidence.

🏦 Industry

• 🏦 NBFC sector remains robust amid rising credit demand and digital transformation.
• 📊 Industry P/E of 22.6 suggests moderate valuation across peers.

✅ Conclusion

• 📈 Bajaj Finance is a strong swing trade candidate with bullish technicals and solid earnings momentum.
• 📉 Optimal entry price: ₹1,030–₹1,040 (near DMA 50 and support).
• 📈 Exit target: ₹1,090–₹1,100 (near recent highs and resistance).
• 📌 Watch for RSI crossing 60 and volume surge for confirmation before entry.

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