CANBK - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | CANBK | Market Cap | 1,22,272 Cr. | Current Price | 135 ₹ | High / Low | 163 ₹ |
| Stock P/E | 6.21 | Book Value | 125 ₹ | Dividend Yield | 2.97 % | ROCE | 6.79 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 140 ₹ | DMA 200 | 134 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.44 % | PAT Qtr | 5,155 Cr. | PAT Prev Qtr | 4,774 Cr. |
| RSI | 42.9 | MACD | -0.47 | Volume | 1,20,32,908 | Avg Vol 1Wk | 1,87,24,305 |
| Low price | 90.1 ₹ | High price | 163 ₹ | PEG Ratio | 0.14 | Debt to equity | 14.7 |
| 52w Index | 61.4 % | Qtr Profit Var | 25.6 % | EPS | 21.7 ₹ | Industry PE | 7.94 |
Analysis: CANBK trades at a low P/E of 6.21 compared to the industry average of 7.94, suggesting undervaluation. EPS of 21.7 ₹ and quarterly PAT growth of 25.6% show earnings strength. However, technical indicators are weak: RSI at 42.9 (near oversold), MACD negative, and price below 50 DMA (140 ₹). High debt-to-equity (14.7) and low ROCE (6.79%) are major concerns. The stock may offer swing trade potential if it stabilizes near support levels.
Optimal Entry Price: Around 132–135 ₹ (near 200 DMA support).
Exit Strategy: If already holding, consider profit booking near 155–160 ₹ resistance, or exit if price falls below 128 ₹.
✅ Positive
- Low P/E ratio (6.21) compared to industry average.
- Quarterly PAT growth of 25.6% (5,155 Cr. vs 4,774 Cr.).
- Dividend yield of 2.97% provides income support.
- ROE at 18.2% indicates strong shareholder returns.
⚠️ Limitation
- High debt-to-equity ratio (14.7).
- ROCE at 6.79% is weak.
- Technical indicators show bearish momentum (negative MACD, RSI below 50).
📉 Company Negative News
- FII holdings decreased (-0.37%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.44%), indicating domestic institutional support.
- Quarterly PAT improved significantly.
🏭 Industry
- Industry PE is 7.94, higher than CANBK’s 6.21, suggesting undervaluation.
- Banking sector remains supported by credit growth and government initiatives, though asset quality risks persist.
📝 Conclusion
CANBK offers undervaluation and steady earnings growth, making it a moderate swing trade candidate. Entry near 132–135 ₹ provides a favorable setup, with profit booking near 155–160 ₹. However, weak technicals and high leverage warrant caution, and strict stop-loss discipline is essential.