CANBK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | CANBK | Market Cap | 1,20,620 Cr. | Current Price | 133 ₹ | High / Low | 163 ₹ |
| Stock P/E | 6.13 | Book Value | 125 ₹ | Dividend Yield | 3.01 % | ROCE | 6.79 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 146 ₹ | DMA 200 | 133 ₹ |
| Chg in FII Hold | 2.72 % | Chg in DII Hold | -1.76 % | PAT Qtr | 5,155 Cr. | PAT Prev Qtr | 4,774 Cr. |
| RSI | 33.4 | MACD | -4.17 | Volume | 1,87,49,126 | Avg Vol 1Wk | 2,23,62,476 |
| Low price | 83.4 ₹ | High price | 163 ₹ | PEG Ratio | 0.14 | Debt to equity | 14.7 |
| 52w Index | 62.3 % | Qtr Profit Var | 25.6 % | EPS | 21.7 ₹ | Industry PE | 7.34 |
📊 CANBK shows fair potential for swing trading. The RSI at 33.4 indicates oversold conditions, suggesting possible rebound. However, MACD is negative, reflecting short-term weakness. The PEG ratio of 0.14 and low P/E of 6.13 highlight undervaluation compared to industry PE (7.34). High debt-to-equity (14.7) and weak ROCE (6.79%) remain concerns.
💡 Optimal Entry Price: Around ₹128–130, near support and aligned with 200 DMA (₹133).
📈 Exit Strategy (if already holding): Consider exiting near ₹145–150, close to 50 DMA resistance zone.
✅ Positive
- Low P/E (6.13) compared to industry average (7.34).
- Strong quarterly profit growth (25.6%) with PAT rising to ₹5,155 Cr.
- ROE at 18.2% shows efficient equity utilization.
- Dividend yield of 3.01% adds investor appeal.
- FII holdings increased by 2.72%, showing foreign investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (14.7) raises financial risk.
- ROCE at 6.79% is weak compared to peers.
- DII holdings decreased by 1.76%, showing reduced domestic institutional interest.
- MACD negative, indicating short-term bearish momentum.
📉 Company Negative News
- No major recent negative news reported, but debt levels remain a structural concern.
📈 Company Positive News
- Consistent profit growth and strong quarterly performance.
- Improved FII participation signals global investor confidence.
🏭 Industry
- Industry PE is 7.34, slightly higher than CANBK’s 6.13, suggesting undervaluation.
- Banking sector benefits from credit growth and rising demand for financial services.
🔎 Conclusion
CANBK is a fair candidate for swing trading with entry near ₹128–130 and exit around ₹145–150. While valuation and earnings growth are positives, high leverage and weak ROCE limit upside. Suitable for traders seeking undervalued opportunities but with moderate risk tolerance.