BSOFT - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📉 BSOFT shows decent technical positioning and strong fundamentals, but recent earnings decline and weak sentiment limit upside. Entry near ₹360 is optimal. If already held, consider exiting around ₹395–₹410.

📈 Positive

• 📊 ROCE of 23.5% and ROE of 18.6% reflect strong operational efficiency.
• 💰 Dividend Yield of 1.75% adds to total return potential.
• 📉 Debt-to-equity ratio of 0.07 indicates a low-leverage balance sheet.
• 📈 MACD at 2.91 and RSI at 53.1 suggest neutral-to-bullish momentum.
• 📈 Trading near DMA 50 (₹370) offers a potential support zone.

⚠️ Limitation

• 📉 Quarterly PAT dropped from ₹80.3 Cr. to ₹36.7 Cr. (↓54.3%).
• 📉 FII holding declined by 1.13% and DII by 0.50%, showing reduced institutional confidence.
• 📉 PEG ratio of -147 indicates poor growth relative to valuation.
• 📉 Trading below DMA 200 (₹423) confirms longer-term weakness.
• 📉 Volume below average (6.41L vs 7.10L), suggesting subdued participation.

📉 Company Negative News

• 📉 BSOFT reported a sharp drop in Q2 profit due to project delays and margin compression.
• 📉 Analysts flagged concerns over client spending cuts in key verticals like BFSI and retail.

📈 Company Positive News

• 📈 Management expects recovery in H2 driven by new deal wins and cost optimization.
• 📈 Focus on cloud and digital transformation services continues to attract mid-sized clients.

💻 Industry

• 💻 IT services sector faces short-term headwinds from global macro uncertainty but benefits from long-term digital demand.
• 📊 Industry P/E of 29.7 reflects moderate valuation across mid-cap IT peers.

✅ Conclusion

• 📉 BSOFT is a moderate swing trade candidate with solid fundamentals but weak earnings and sentiment.
• 📉 Optimal entry price: ₹360–₹365 (near support and below DMA 50).
• 📈 Exit target: ₹395–₹410 (near resistance and psychological level).
• 📌 Watch for MACD crossover and RSI above 60 for stronger confirmation.

I can chart BSOFT’s RSI and MACD trends to help visualize its momentum setup—just let me know.