BBTC - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | BBTC | Market Cap | 10,566 Cr. | Current Price | 1,515 ₹ | High / Low | 2,156 ₹ |
| Stock P/E | 175 | Book Value | 31.2 ₹ | Dividend Yield | 1.12 % | ROCE | 28.0 % |
| ROE | 55.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,699 ₹ | DMA 200 | 1,838 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.01 % | PAT Qtr | 103 Cr. | PAT Prev Qtr | -10.6 Cr. |
| RSI | 33.1 | MACD | -67.4 | Volume | 31,170 | Avg Vol 1Wk | 41,209 |
| Low price | 1,476 ₹ | High price | 2,156 ₹ | PEG Ratio | 1.09 | Debt to equity | 1.21 |
| 52w Index | 5.66 % | Qtr Profit Var | -13.0 % | EPS | 22.3 ₹ | Industry PE | 47.6 |
Analysis: Bombay Burmah Trading Corporation (BBTC) shows mixed signals. At ₹1,515, the stock is trading below both its 50 DMA (₹1,699) and 200 DMA (₹1,838), reflecting bearish sentiment. RSI at 33.1 suggests oversold conditions, while MACD at -67.4 confirms strong downward momentum. Fundamentals are a mix of strengths and risks: ROCE at 28% and ROE at 55.5% are impressive, but the debt-to-equity ratio of 1.21 indicates high leverage. The P/E of 175 is extremely high compared to the industry average of 47.6, pointing to severe overvaluation. EPS of ₹22.3 and PEG ratio of 1.09 show moderate growth-adjusted value. Quarterly PAT recovery (₹103 Cr. vs -₹10.6 Cr.) is positive, but profit variation (-13%) raises caution. Swing trade potential is limited and risky.
Optimal Entry Price: Around ₹1,480–₹1,500, close to support levels, only for short-term rebound trades.
Exit Strategy (if already holding): Consider exiting near ₹1,680–₹1,700, where resistance aligns with the 50 DMA. A stop-loss near ₹1,460 is advisable to manage downside risk.
✅ Positive
- Strong ROCE (28%) and ROE (55.5%).
- EPS of ₹22.3 reflects solid earnings power.
- Dividend yield of 1.12% adds shareholder value.
- Quarterly PAT recovery from loss (-₹10.6 Cr.) to profit (₹103 Cr.).
⚠️ Limitation
- Extremely high P/E of 175 vs industry 47.6.
- High debt-to-equity ratio (1.21).
- Stock trading below both 50 & 200 DMA.
- Weak RSI and MACD indicate bearish momentum.
📰 Company Negative News
- Quarterly profit variation (-13%) raises concerns.
- FII holdings increased only marginally (+0.12%), while DII holdings declined (-0.01%).
🌟 Company Positive News
- Quarterly PAT recovery from losses to profit.
- Strong ROE and ROCE highlight operational efficiency.
- Dividend yield of 1.12% provides investor returns.
🏭 Industry
- Diversified trading and plantation sector remains cyclical but benefits from commodity demand.
- Industry P/E at 47.6 indicates moderate valuations compared to BBTC’s extreme premium pricing.
📌 Conclusion
BBTC is fundamentally strong in efficiency metrics but faces high leverage and extreme overvaluation. Technical indicators remain bearish, limiting swing trade potential. Entry near ₹1,480–₹1,500 may be considered for a short-term rebound, with exit around ₹1,680–₹1,700. Overall, caution is strongly advised due to valuation risks and weak momentum.