BATAINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.9

📊 BATAINDIA shows weak potential for swing trading at present. The stock is trading below both its 50 DMA (1,034 ₹) and 200 DMA (1,166 ₹), indicating bearish technicals. Momentum indicators are negative (RSI 29.7, MACD -28.5), suggesting oversold conditions but continued weakness. The optimal entry price would be around 940–955 ₹ only if the stock stabilizes and shows reversal signs. If already holding, consider exiting near 1,020–1,040 ₹ (close to 50 DMA resistance) or cut losses if the price falls below 930 ₹.

✅ Positive

• 📈 Strong brand presence and market leadership in footwear.
• 💼 Dividend yield of 2.01% provides income support.
• 📊 Reasonable return ratios (ROCE 15.2%, ROE 15.6%).
• 📈 EPS of 13 ₹ offers earnings visibility.
• 📈 Stable institutional holdings (FII unchanged, DII slightly positive at +0.04%).

⚠️ Limitation

• 📉 Very high valuation (P/E 66.9 vs Industry PE 37.6).
• 📉 Weak technicals (price below DMA levels, RSI oversold, MACD negative).
• 📉 Quarterly profit declined sharply (PAT down from 54.9 Cr. to 18.7 Cr., -64.2%).
• 📉 PEG ratio of 1.97 suggests expensive growth expectations.
• 📉 Stock underperforming with 52w Index at only 3.65%.

🚨 Company Negative News

• 📉 Sharp decline in quarterly profits may weigh on investor sentiment.
• 📉 Weak technical momentum and valuations limit upside potential.

🌟 Company Positive News

• 📈 Dividend payout supports investor returns.
• 💼 Strong brand recognition and market presence provide long-term stability.

🏭 Industry

• 📊 Industry PE at 37.6, much lower than BATAINDIA’s P/E, suggesting overvaluation.
• 👟 Footwear and retail sector benefits from consumer demand but faces margin pressures and competition.

📌 Conclusion

BATAINDIA is a weak candidate for swing trading at present due to stretched valuations, sharp profit decline, and bearish technicals. Entry should be considered only if the stock stabilizes near 940–955 ₹ with reversal signals. Exit strategy: book profits near 1,020–1,040 ₹ or cut losses if the price falls below 930 ₹. Traders should remain cautious and adopt strict stop-loss discipline.

I can also prepare a comparative swing trade outlook for BATAINDIA vs BALRAMCHIN and BALKRISIND to highlight relative strengths and weaknesses.