BHARATFORG - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Bharat Forge is a strong swing trade candidate with bullish momentum, solid fundamentals, and institutional support. Entry near ₹1,300 is optimal. If already held, consider exiting around ₹1,440–₹1,470.

📈 Positive

• 📊 ROCE of 14.6% and ROE of 13.7% indicate efficient capital utilization.
• 📈 MACD at 30.5 and RSI at 64.6 reflect strong bullish momentum.
• 📈 Trading above DMA 50 (₹1,245) and DMA 200 (₹1,234) confirms a sustained uptrend.
• 📉 Debt-to-equity ratio of 0.39 is healthy for a manufacturing company.
• 📈 DII holding increased by 0.85%, indicating growing domestic institutional interest.

⚠️ Limitation

• 💸 Stock P/E of 45.3 is significantly higher than the industry average of 32.8.
• 📉 PEG ratio of 3.92 suggests overvaluation relative to growth.
• 📉 Quarterly PAT declined from ₹360 Cr. to ₹339 Cr. (↓5.8%).
• 📉 FII holding dropped by 0.75%, showing reduced foreign investor confidence.
• 📉 Volume below average (5.76L vs 7.20L), indicating lower short-term participation.

📉 Company Negative News

• 📉 Analysts have expressed concerns over margin pressure due to rising input costs and global demand fluctuations.

📈 Company Positive News

• 📈 Bharat Forge continues to expand in defense and EV components, supporting long-term growth.
• 📈 Strong export pipeline and diversified order book enhance revenue visibility.

🏭 Industry

• 🏭 The auto and industrial components sector is gaining momentum with infrastructure and defense investments.
• 📊 Industry P/E of 32.8 reflects moderate valuation across peers.

✅ Conclusion

• 📈 Bharat Forge is a strong swing trade candidate with bullish technicals and solid fundamentals.
• 📉 Optimal entry price: ₹1,300–₹1,310 (near support and below recent highs).
• 📈 Exit target: ₹1,440–₹1,470 (approaching resistance and previous high).
• 📌 Monitor RSI nearing 70 and MACD flattening for signs of trend exhaustion.

Would you like a visual chart of BHARATFORG’s RSI and MACD trends to support this analysis?