BALKRISIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | BALKRISIND | Market Cap | 42,636 Cr. | Current Price | 2,205 ₹ | High / Low | 2,818 ₹ |
| Stock P/E | 33.1 | Book Value | 540 ₹ | Dividend Yield | 0.73 % | ROCE | 16.5 % |
| ROE | 15.5 % | Face Value | 2.00 ₹ | DMA 50 | 2,265 ₹ | DMA 200 | 2,380 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | -0.17 % | PAT Qtr | 375 Cr. | PAT Prev Qtr | 265 Cr. |
| RSI | 47.0 | MACD | -10.5 | Volume | 89,533 | Avg Vol 1Wk | 1,22,693 |
| Low price | 2,015 ₹ | High price | 2,818 ₹ | PEG Ratio | 7.60 | Debt to equity | 0.35 |
| 52w Index | 23.6 % | Qtr Profit Var | -14.7 % | EPS | 66.7 ₹ | Industry PE | 24.1 |
Analysis: Balkrishna Industries shows moderate swing trade potential. The RSI (47.0) indicates neutral momentum, while MACD (-10.5) suggests bearish pressure. The current price (₹2,205) is slightly below the 50 DMA (₹2,265) and 200 DMA (₹2,380), reflecting weakness in both short- and long-term trends. Fundamentals are decent with ROCE (16.5%) and ROE (15.5%), but valuation is expensive (P/E 33.1 vs industry 24.1) and PEG ratio (7.60) highlights poor growth justification. Liquidity is moderate, with volumes below weekly averages. Overall, the stock is not strongly positioned for swing trading unless it stabilizes near support levels.
Optimal Entry Price: Around ₹2,100–₹2,150, closer to support zones.
Exit Strategy (if already holding): Consider profit booking near ₹2,350–₹2,400 unless momentum strengthens past ₹2,400.
✅ Positive
- ROCE (16.5%) and ROE (15.5%) reflect decent efficiency.
- Debt-to-equity ratio of 0.35 indicates manageable leverage.
- EPS of ₹66.7 shows solid earnings power.
- FII holdings increased slightly (+0.13%).
⚠️ Limitation
- High P/E (33.1) compared to industry average (24.1).
- PEG ratio of 7.60 suggests valuation far exceeds growth prospects.
- Dividend yield is modest (0.73%), limiting passive returns.
- Stock trading below both 50 DMA and 200 DMA indicates weak technicals.
📉 Company Negative News
- DII holdings decreased (-0.17%), showing reduced domestic investor confidence.
- Quarterly profit variation (-14.7%) highlights earnings weakness.
- MACD negative, pointing to bearish momentum.
📈 Company Positive News
- Quarterly PAT improved to ₹375 Cr. from ₹265 Cr.
- Strong book value (₹540) supports balance sheet strength.
- Volumes remain adequate for liquidity despite being below average.
🏭 Industry
- Industry P/E at 24.1 is lower, showing Balkrishna trades at a premium.
- Automobile and tire sector outlook remains stable, but peers are more reasonably valued.
🔎 Conclusion
Balkrishna Industries is a weak-to-moderate swing trade candidate. Entry near ₹2,100–₹2,150 offers better risk-reward, with exit around ₹2,350–₹2,400. While fundamentals show decent efficiency, expensive valuation and bearish technicals limit upside. Traders should remain cautious and monitor earnings trends before aggressive positioning.