BLS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | BLS | Market Cap | 11,887 Cr. | Current Price | 289 ₹ | High / Low | 458 ₹ |
| Stock P/E | 1,585 | Book Value | 1.83 ₹ | Dividend Yield | 0.35 % | ROCE | 19.0 % |
| ROE | 22.0 % | Face Value | 1.00 ₹ | DMA 50 | 299 ₹ | DMA 200 | 338 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.02 % | PAT Qtr | 4.90 Cr. | PAT Prev Qtr | 0.75 Cr. |
| RSI | 51.6 | MACD | -12.8 | Volume | 3,75,82,720 | Avg Vol 1Wk | 84,26,532 |
| Low price | 246 ₹ | High price | 458 ₹ | PEG Ratio | 154 | Debt to equity | 0.09 |
| 52w Index | 20.4 % | Qtr Profit Var | -73.8 % | EPS | 0.18 ₹ | Industry PE | 41.4 |
📊 BLS (₹289) and BEML (₹1,765) show contrasting swing trade setups. BLS trades below its 50 DMA (₹299) and 200 DMA (₹338), with RSI at 51.6 and negative MACD (-12.8), indicating weak momentum. Fundamentals are concerning with extremely high P/E (1,585 vs industry 41.4), very low EPS (₹0.18), and sharp quarterly profit decline (-73.8%). Despite strong ROCE (19%) and ROE (22%), valuations are stretched. BEML trades below its 50 DMA (₹1,807) and 200 DMA (₹1,905), with RSI at 49.8 and MACD negative (-18.1), showing weak technicals. Fundamentals are moderate with P/E 48.4 vs industry 32.4, ROCE 16.1%, ROE 10.6%, and PAT recovery (₹54.8 Cr. vs -₹63.9 Cr.). Overall, BEML offers a better swing trade opportunity than BLS, though both require caution.
💡 Optimal Entry Price:
- BLS: ₹270–₹280 (near support, speculative).
- BEML: ₹1,720–₹1,740 (support zone).
💡 Exit Strategy:
- BLS: Exit near ₹310–₹320 if rebound occurs.
- BEML: Exit near ₹1,850–₹1,880 unless momentum strengthens further.
✅ Positive
- BLS: Strong ROCE (19%) and ROE (22%), PAT improved from ₹0.75 Cr. to ₹4.90 Cr., high trading volume.
- BEML: PAT recovery from losses, decent ROCE (16.1%), dividend yield 0.60%, PEG ratio 1.63 indicates fair valuation.
⚠️ Limitation
- BLS: Extremely high P/E (1,585), very low EPS (₹0.18), sharp profit decline (-73.8%), weak technicals.
- BEML: Trading below DMAs, weak momentum, reduced FII (-0.31%) and DII (-0.15%) holdings.
📉 Company Negative News
- BLS: Valuation bubble with unsustainable P/E, profit decline raises concerns.
- BEML: Investor participation declining, weak technical indicators.
📈 Company Positive News
- BLS: ROCE and ROE remain strong, showing efficient capital use.
- BEML: Profit turnaround, EPS ₹36.5, stable dividend yield.
🏭 Industry
- BLS: Industry PE ~41.4, company trades at extreme premium, making valuations risky.
- BEML: Industry PE ~32.4, company trades at moderate premium, supported by recovery signs in capital goods sector.
🔎 Conclusion
BEML is a better candidate for swing trading due to improving fundamentals and fairer valuation, despite weak technicals. Entry near ₹1,720–₹1,740 with exit around ₹1,850–₹1,880 is advisable. BLS remains highly speculative with