BHARATFORG - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | BHARATFORG | Market Cap | 81,943 Cr. | Current Price | 1,712 ₹ | High / Low | 1,936 ₹ |
| Stock P/E | 61.3 | Book Value | 231 ₹ | Dividend Yield | 0.50 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,676 ₹ | DMA 200 | 1,442 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 1.97 % | PAT Qtr | 322 Cr. | PAT Prev Qtr | 316 Cr. |
| RSI | 46.5 | MACD | 21.1 | Volume | 13,04,462 | Avg Vol 1Wk | 14,28,009 |
| Low price | 919 ₹ | High price | 1,936 ₹ | PEG Ratio | 5.31 | Debt to equity | 0.33 |
| 52w Index | 78.0 % | Qtr Profit Var | -7.03 % | EPS | 26.8 ₹ | Industry PE | 23.7 |
Analysis: Bharat Forge (BHARATFORG) has decent fundamentals with ROCE at 14.6% and ROE at 13.7%, though not as strong as peers. The company carries moderate debt (0.33 debt-to-equity), but remains financially stable. At ₹1,712, the stock is trading above its 50 DMA (₹1,676) and 200 DMA (₹1,442), showing medium-term strength. RSI at 46.5 indicates neutral momentum, while MACD at 21.1 suggests bullish crossover potential. However, the P/E of 61.3 is significantly higher than the industry average (23.7), and the PEG ratio of 5.31 highlights overvaluation. Quarterly profit variation (-7.03%) shows earnings pressure. Swing trade potential exists, but valuation risk is high.
Optimal Entry Price: Around ₹1,680–₹1,700, close to the 50 DMA support.
Exit Strategy (if already holding): Consider exiting near ₹1,850–₹1,880, close to resistance levels. A stop-loss near ₹1,640 is advisable to manage downside risk.
✅ Positive
- Strong price momentum above both 50 & 200 DMA.
- Healthy EPS of ₹26.8.
- DII holdings increased (+1.97%), showing domestic institutional support.
- 52-week index performance at 78% reflects strong long-term momentum.
⚠️ Limitation
- High valuation: P/E 61.3 vs industry 23.7.
- PEG ratio of 5.31 indicates poor growth-adjusted valuation.
- ROCE and ROE are moderate compared to sector leaders.
📰 Company Negative News
- Quarterly profit declined (-7.03% variation).
- FII holdings decreased (-1.22%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Stable PAT performance (₹322 Cr. vs ₹316 Cr.).
- DII holdings increased significantly (+1.97%).
- Strong price recovery from 52-week low of ₹919.
🏭 Industry
- Auto and engineering sector showing cyclical recovery.
- Industry P/E at 23.7 indicates moderate valuations compared to Bharat Forge’s premium pricing.
📌 Conclusion
Bharat Forge is technically strong with price momentum above key moving averages, but faces valuation risks and moderate profitability metrics. Entry near ₹1,680–₹1,700 is favorable, with exit around ₹1,850–₹1,880. Swing trade potential exists, but caution is advised due to high P/E and earnings pressure.