⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

CENTRALBK - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 05 Feb 26, 02:16 am

Swing Trade Rating: 3.6

Stock Code CENTRALBK Market Cap 33,716 Cr. Current Price 37.3 ₹ High / Low 52.8 ₹
Stock P/E 7.20 Book Value 43.1 ₹ Dividend Yield 1.61 % ROCE 5.45 %
ROE 11.1 % Face Value 10.0 ₹ DMA 50 37.3 ₹ DMA 200 39.3 ₹
Chg in FII Hold -0.03 % Chg in DII Hold -0.04 % PAT Qtr 1,263 Cr. PAT Prev Qtr 1,213 Cr.
RSI 51.0 MACD -0.19 Volume 58,62,436 Avg Vol 1Wk 75,78,997
Low price 32.8 ₹ High price 52.8 ₹ PEG Ratio 0.13 Debt to equity 12.4
52w Index 22.6 % Qtr Profit Var 31.7 % EPS 5.17 ₹ Industry PE 7.88

📊 CENTRALBK shows moderate potential for swing trading. The stock is trading at its 50 DMA but below the 200 DMA, reflecting weak long-term momentum. Strong quarterly profit growth and a very low PEG ratio support fundamentals, but high debt-to-equity and declining institutional interest limit upside. The stock is near its 52-week low, offering cautious entry opportunities for traders.

💡 Optimal Entry Price: Around 35–36 ₹ (near support zone, slightly below current price).

📈 Exit Strategy if Holding: Consider booking profits near 42–44 ₹ (short-term resistance) or if RSI rises above 60.

✅ Positive

  • Quarterly PAT growth: 1,263 Cr. vs. 1,213 Cr. (31.7% YoY variation).
  • PEG ratio of 0.13 indicates undervaluation relative to growth.
  • EPS of 5.17 ₹ supports earnings visibility.
  • P/E of 7.20 is slightly below industry average (7.88), suggesting fair valuation.
  • Dividend yield of 1.61% adds income appeal.

⚠️ Limitation

  • Current price (37.3 ₹) is below 200 DMA (39.3 ₹), showing weak long-term trend.
  • MACD negative (-0.19), suggesting weak short-term momentum.
  • Volume (58.6 lakh) is lower than average weekly volume (75.7 lakh), showing reduced participation.
  • ROCE at 5.45% and ROE at 11.1% are modest compared to peers.
  • Debt-to-equity ratio at 12.4 is very high, raising financial risk.

📉 Company Negative News

  • Decline in FII holdings (-0.03%) and DII holdings (-0.04%) shows reduced institutional confidence.
  • High leverage remains a structural concern.

📈 Company Positive News

  • Strong quarterly profit growth supports earnings momentum.
  • Low PEG ratio highlights undervaluation relative to growth prospects.
  • Dividend yield provides additional investor appeal.

🏦 Industry

  • Industry P/E at 7.88 is slightly higher than CENTRALBK’s 7.20, suggesting relative undervaluation.
  • Banking sector outlook remains steady, supported by credit demand, though high leverage is common among PSU banks.

🔎 Conclusion

CENTRALBK earns a swing trade rating of 3.6. Entry near 35–36 ₹ offers a cautious opportunity, while exit around 42–44 ₹ is optimal. Strong profit growth and undervaluation support fundamentals, but weak technicals, high debt, and declining institutional interest suggest traders should adopt a conservative approach with strict stop-losses.

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