BRIGADE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📉 Brigade Enterprises shows decent technical momentum and strong sector positioning, but valuation and earnings pressure limit upside. Entry near ₹990 is optimal. If already held, consider exiting around ₹1,080–₹1,120.

📈 Positive

• 📊 ROCE of 9.09% and ROE of 8.80% reflect stable capital efficiency for a real estate firm.
• 📈 MACD at 27.0 and RSI at 60.3 suggest bullish momentum building.
• 📈 Trading above DMA 50 (₹975) and near DMA 200 (₹1,030) indicates technical support.
• 📉 Debt-to-equity ratio of 0.32 is moderate and manageable for the sector.
• 📈 EPS of ₹16.6 and consistent profitability support long-term value.

⚠️ Limitation

• 💸 Stock P/E of 61.6 vs industry average of 41.3 suggests overvaluation.
• 📉 Quarterly PAT dropped from ₹55.0 Cr. to ₹50.2 Cr. (↓8.7%).
• 📉 FII holding declined by 0.66% and DII by 0.16%, showing reduced institutional interest.
• 📉 PEG ratio of 4.20 signals expensive growth expectations.
• 📉 Volume below average (2.97L vs 3.79L), indicating subdued participation.

📉 Company Negative News

• 📉 Analysts flagged margin pressure due to rising construction costs and delayed project approvals.

📈 Company Positive News

• 📈 Brigade continues to benefit from strong demand in residential and commercial real estate across South India.
• 📈 Management expects improved cash flows and new launches in Q3 and Q4 to drive growth.

🏢 Industry

• 🏢 Real estate sector is gaining momentum with rising urban demand, infrastructure push, and lower inventory levels.
• 📊 Industry P/E of 41.3 reflects moderate optimism across listed developers.

✅ Conclusion

• 📉 Brigade is a moderate swing trade candidate with improving technicals but valuation and earnings concerns.
• 📉 Optimal entry price: ₹990–₹1,000 (near DMA 50 and support zone).
• 📈 Exit target: ₹1,080–₹1,120 (near resistance and psychological level).
• 📌 Watch for RSI crossing 65 and MACD widening for confirmation before entry.

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