BRIGADE - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 2.9

📊 Brigade Enterprises shows weak potential for swing trading at current levels. The stock is trading below both its 50 DMA (919 ₹) and 200 DMA (996 ₹), with RSI at 42.8 indicating mildly oversold conditions. MACD is negative (-19.2), suggesting bearish momentum. High P/E of 52.4 compared to industry PE of 33.7 and declining quarterly profits limit upside. Optimal entry would be closer to 840–860 ₹ (near support). If already holding, consider exiting near 910–930 ₹ unless momentum improves.

✅ Positive

• 📈 Market cap of 21,183 Cr. provides stability.
• 💹 Reasonable debt-to-equity ratio of 0.32, showing manageable leverage.
• 📊 EPS of 16.6 ₹ supports earnings base.
• 📈 Book value of 252 ₹ provides some valuation cushion.

⚠️ Limitation

• 📉 High P/E of 52.4 compared to industry PE of 33.7.
• 📉 Weak ROCE (9.09%) and ROE (8.80%).
• 📉 Quarterly PAT declined to 50.2 Cr. from 55.0 Cr. (-44.6% variation).
• 📉 RSI at 42.8 and MACD negative (-19.2) indicate weak momentum.
• 📉 Both FII (-0.66%) and DII (-0.16%) holdings decreased.

🚨 Company Negative News

No major fresh negative news reported, but declining profits, weak technicals, and reduced institutional interest remain concerns.

🌟 Company Positive News

Stable market capitalization and manageable debt levels provide some long-term confidence despite short-term weakness.

🏭 Industry

The real estate and construction industry trades at an average PE of 33.7. Brigade’s valuation is significantly higher, reflecting growth optimism but also overvaluation risk.

📌 Conclusion

Brigade Enterprises is a risky swing trade candidate due to weak technicals and stretched valuations. Best entry near 840–860 ₹ (close to support levels). If already holding, exit near 910–930 ₹ unless momentum breaks resistance. Risk-reward is unfavorable, with caution advised despite stable fundamentals.

I can also prepare a comparison of Brigade Enterprises with peers like Sobha or Prestige Estates to highlight relative swing trade opportunities in the real estate sector.