BHARATFORG - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | BHARATFORG | Market Cap | 88,047 Cr. | Current Price | 1,846 ₹ | High / Low | 1,950 ₹ |
| Stock P/E | 65.9 | Book Value | 231 ₹ | Dividend Yield | 0.46 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,768 ₹ | DMA 200 | 1,526 ₹ |
| Chg in FII Hold | 1.75 % | Chg in DII Hold | -1.46 % | PAT Qtr | 322 Cr. | PAT Prev Qtr | 316 Cr. |
| RSI | 53.3 | MACD | 38.0 | Volume | 10,68,221 | Avg Vol 1Wk | 13,89,952 |
| Low price | 1,080 ₹ | High price | 1,950 ₹ | PEG Ratio | 5.70 | Debt to equity | 0.33 |
| 52w Index | 88.0 % | Qtr Profit Var | -7.03 % | EPS | 26.8 ₹ | Industry PE | 27.6 |
Analysis: Bharat Forge (BHARATFORG) has decent fundamentals with ROCE at 14.6% and ROE at 13.7%. The debt-to-equity ratio of 0.33 is manageable, though not debt-free. The current price of ₹1,846 is above both the 50 DMA (₹1,768) and 200 DMA (₹1,526), showing long-term strength. RSI at 53.3 indicates neutral momentum, while MACD is strongly positive, suggesting bullish undertones. However, the stock trades at a very high P/E of 65.9 compared to industry average of 27.6, and PEG ratio of 5.70 signals expensive growth. Quarterly PAT fell slightly (-7.03%), which raises caution for swing traders.
Optimal Entry Price: ₹1,770–₹1,790 (near 50 DMA support).
Exit Strategy (if already holding): Consider profit booking near ₹1,900–₹1,920 resistance, with a stop-loss below ₹1,750.
✅ Positive
- Strong long-term trend above 200 DMA.
- MACD positive, indicating bullish momentum.
- FII holdings increased (+1.75%), showing foreign investor confidence.
- EPS of ₹26.8 supports earnings visibility.
⚠️ Limitation
- High P/E (65.9) compared to industry average (27.6).
- PEG ratio of 5.70 indicates expensive growth prospects.
- Quarterly profit variation (-7.03%) shows earnings pressure.
- DII holdings decreased (-1.46%), reflecting reduced domestic support.
📉 Company Negative News
- Quarterly PAT declined from ₹316 Cr. to ₹322 Cr. with negative variation (-7.03%).
- Domestic institutional investors reduced holdings (-1.46%).
📈 Company Positive News
- FII holdings increased significantly (+1.75%).
- Stock trading well above 200 DMA, showing long-term strength.
- Strong EPS (₹26.8) supports valuation despite high P/E.
🏭 Industry
- Auto and engineering sector remains cyclical but benefits from infrastructure and defense demand.
- Industry P/E at 27.6 indicates sector is moderately valued compared to Bharat Forge’s premium valuation.
🔎 Conclusion
Bharat Forge is a moderately strong swing trade candidate with bullish technical signals and foreign investor support. Entry near ₹1,770–₹1,790 is favorable, with profit booking around ₹1,900–₹1,920. However, high valuations and recent profit decline demand caution. Traders should use strict stop-loss management below ₹1,750 to mitigate risks.