BANDHANBNK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📊 BANDHANBNK shows weak-to-moderate potential for swing trading. The stock is trading close to its 50 DMA (153 ₹) and slightly below its 200 DMA (163 ₹), indicating limited technical strength. Momentum indicators are neutral to weak (RSI 43.7, MACD negative), suggesting consolidation. The optimal entry price would be around 148–152 ₹ if the stock sustains above 148 ₹. If already holding, consider exiting near 170–175 ₹ (short-term resistance) or cut losses if the price falls below 145 ₹.

✅ Positive

• 📈 Fair valuation (P/E 19.7 vs Industry PE 14.7).
• 💼 Dividend yield of 1.01% provides some income support.
• 📊 EPS of 7.62 ₹ offers earnings visibility.
• 📈 DII holdings increased (+1.30%), showing domestic institutional confidence.
• 📉 PEG ratio of 0.11 suggests undervaluation relative to growth.

⚠️ Limitation

• 📉 Weak return ratios (ROCE 7.82%, ROE 11.9%).
• 📉 Quarterly profit declined sharply (PAT down from 372 Cr. to 112 Cr., -88.1%).
• 📉 High debt-to-equity ratio (6.76), typical for banks but adds risk.
• 📉 Price trading below 200 DMA, showing weak technical strength.
• 📉 Decline in FII holdings (-0.90%).

🚨 Company Negative News

• 📉 Sharp decline in quarterly profits may weigh on investor sentiment.
• 📉 Reduced foreign institutional interest.

🌟 Company Positive News

• 📈 Domestic institutions increased stake, showing confidence in long-term growth.
• 💼 Stable dividend payout supports investor returns.

🏭 Industry

• 📊 Industry PE at 14.7, lower than BANDHANBNK’s P/E, suggesting mild overvaluation.
• 🏦 Banking sector remains cyclical but benefits from credit growth and financial inclusion initiatives.

📌 Conclusion

BANDHANBNK is a weak candidate for swing trading at present due to sharp profit decline, high leverage, and weak technicals. Entry should be considered only if the stock stabilizes near 148–152 ₹ with reversal signals. Exit strategy: book profits near 170–175 ₹ or cut losses if the price falls below 145 ₹. Traders should remain cautious and adopt strict stop-loss discipline.

I can also prepare a comparative swing trade outlook for BANDHANBNK vs AXISBANK and BAJFINANCE to highlight relative strengths and weaknesses.