BALKRISIND - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

📈 Balkrishna Industries shows improving technicals and strong fundamentals, though valuation and earnings pressure limit upside. Entry near ₹2,340 is optimal. If already held, consider exiting around ₹2,500–₹2,550.

📈 Positive

• 📊 ROCE of 16.5% and ROE of 15.5% reflect solid capital efficiency.
• 📈 EPS of ₹70 and Dividend Yield of 0.68% offer decent shareholder returns.
• 📈 Trading near DMA 50 (₹2,356) and above average volume suggest renewed interest.
• 📈 FII holding increased by 0.20%, indicating foreign investor confidence.
• 📉 Debt-to-equity ratio of 0.35 is healthy for a capital-intensive business.

⚠️ Limitation

• 📉 MACD at -6.34 and RSI at 56.3 show neutral-to-weak momentum.
• 📉 Trading below DMA 200 (₹2,512) suggests overhead resistance.
• 💸 PEG ratio of 7.74 implies expensive valuation relative to growth.
• 📉 Quarterly PAT declined from ₹287 Cr. to ₹265 Cr. (↓7.7%).
• 📉 DII holding dropped by 0.16%, showing mild domestic caution.

📉 Company Negative News

• 📉 Profitability impacted by raw material cost pressures and muted export demand in recent quarters.

📈 Company Positive News

• 📈 Company maintains strong balance sheet and continues to invest in capacity expansion and R&D.
• 📈 Analysts expect margin recovery in FY26 as input costs stabilize.

🚜 Industry

• 🚜 Specialty tyre segment remains cyclical, with demand tied to agri and off-highway equipment trends.
• 📊 Industry P/E of 31.9 suggests moderate valuation across peers.

✅ Conclusion

• 📈 Balkrishna Industries is a moderate-to-good swing trade candidate with improving technicals and solid fundamentals.
• 📉 Optimal entry price: ₹2,340–₹2,360 (near DMA 50 and support).
• 📈 Exit target: ₹2,500–₹2,550 (near DMA 200 and resistance zone).
• 📌 Watch for MACD crossover and RSI above 60 for stronger confirmation.

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