BALKRISIND - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.9

📊 BALKRISIND shows moderate-to-good potential for swing trading. The stock is trading near its 50 DMA (2,350 ₹) and slightly below its 200 DMA (2,467 ₹), indicating mixed technical signals. Momentum indicators are supportive (RSI 52.8, MACD positive at 11.7), suggesting short-term bullishness. The optimal entry price would be around 2,340–2,360 ₹ if the stock sustains above 2,340 ₹. If already holding, consider exiting near 2,850–2,900 ₹ (recent resistance zone) or on weakness below 2,300 ₹.

✅ Positive

• 📈 Decent return ratios (ROCE 16.5%, ROE 15.5%).
• 💼 EPS of 70 ₹ provides earnings visibility.
• 📊 Dividend yield of 0.68% adds investor appeal.
• 📈 Strong trading volume (99k vs avg 90k), showing active participation.
• 📈 FII holdings increased (+0.20%), indicating foreign investor confidence.

⚠️ Limitation

• 📉 Valuation slightly stretched (P/E 33.8 vs Industry PE 31.0).
• 📉 Quarterly profit declined (PAT down from 287 Cr. to 265 Cr., -24.3%).
• 📉 PEG ratio of 7.76 suggests expensive growth expectations.
• 📉 DII holdings decreased (-0.16%).

🚨 Company Negative News

• 📉 Profit decline in the latest quarter may weigh on sentiment.

🌟 Company Positive News

• 📈 Technical indicators (RSI and MACD) show short-term bullishness.
• 💼 Stable financial structure with manageable debt (Debt to equity: 0.35).

🏭 Industry

• 📊 Industry PE at 31.0, slightly lower than BALKRISIND’s P/E, suggesting mild overvaluation.
• 🚜 Specialty tyre and rubber sector benefits from global demand but faces cyclical risks.

📌 Conclusion

BALKRISIND is a moderately good candidate for swing trading with entry near 2,340–2,360 ₹ and exit near 2,850–2,900 ₹. Strong technical momentum supports upside, but profit decline and high PEG ratio limit long-term appeal. Traders should maintain a stop-loss below 2,300 ₹ to manage risk.

I can also prepare a comparative swing trade outlook for BALKRISIND vs BAJAJ-AUTO and BAJFINANCE to highlight relative strengths and weaknesses.