CANBK - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | CANBK | Market Cap | 1,21,428 Cr. | Current Price | 134 ₹ | High / Low | 163 ₹ |
| Stock P/E | 6.30 | Book Value | 125 ₹ | Dividend Yield | 3.14 % | ROCE | 6.55 % |
| ROE | 18.1 % | Face Value | 2.00 ₹ | DMA 50 | 134 ₹ | DMA 200 | 134 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.44 % | PAT Qtr | 4,506 Cr. | PAT Prev Qtr | 5,155 Cr. |
| RSI | 51.4 | MACD | 0.27 | Volume | 1,72,61,460 | Avg Vol 1Wk | 2,52,23,013 |
| Low price | 104 ₹ | High price | 163 ₹ | PEG Ratio | 0.27 | Debt to equity | 15.2 |
| 52w Index | 51.0 % | Qtr Profit Var | -9.94 % | EPS | 21.2 ₹ | Industry PE | 8.61 |
CANBK shows moderate potential for swing trading. The current price of ₹134 is aligned with both the 50 DMA and 200 DMA, indicating consolidation. RSI at 51.4 suggests neutral momentum, while MACD at 0.27 shows weak bullish signals. The PEG ratio of 0.27 highlights undervaluation relative to growth, but the high debt-to-equity ratio of 15.2 and declining quarterly profits (-9.94%) add caution.
✅ Optimal Entry Price: ₹128–₹132 (near support levels)
📈 Exit Strategy (if already holding): Consider booking profits around ₹155–₹160, unless momentum strengthens beyond resistance.
🌟 Positive
- 📈 Attractive valuation: P/E of 6.30 vs industry P/E of 8.61.
- 💰 Dividend yield of 3.14% provides steady income.
- 📊 EPS of ₹21.2 shows consistent earnings.
- 📉 PEG ratio of 0.27 suggests undervaluation relative to growth.
⚠️ Limitation
- 💳 Very high debt-to-equity ratio (15.2) increases financial risk.
- 📉 ROCE at 6.55% is weak compared to peers.
- 📊 Quarterly profit declined by nearly 10% (₹5,155 Cr. → ₹4,506 Cr.).
📰 Company Negative News
- 📉 Decline in FII holding (-0.37%) indicates reduced foreign investor confidence.
- 📉 Profit contraction in the latest quarter raises concerns.
📰 Company Positive News
- 📈 Increase in DII holding (+0.44%) shows domestic institutional support.
- 💹 Stable price consolidation near DMA levels suggests technical support.
🏭 Industry
- 📊 Industry P/E at 8.61 is higher than CANBK’s 6.30, suggesting undervaluation.
- 🏦 Banking sector benefits from credit demand but faces margin pressures.
✅ Conclusion
CANBK is a fair swing trade candidate with undervaluation and dividend support. Entry around ₹128–₹132 is optimal, with an exit near ₹155–₹160 if resistance holds. Caution is advised due to high leverage and declining quarterly profits.
Would you like me to also compare CANBK’s swing trade outlook with another PSU bank like SBI or Bank of Baroda to highlight relative opportunities?