HBLENGINE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.1

HBLENGINE has a great long-term story and strong capital efficiency, but recent signs of weakness in earnings momentum and technical indicators suggest a wait-and-watch approach for swing trades. It’s hovering near key support levels with unclear directional bias.

📊 Fundamental Snapshot

P/E: 58.1 vs Industry PE: 30.7 → Highly overvalued, risky for short-term trades

ROCE: 26.3% | ROE: 20.5% → Exceptional capital efficiency

PEG Ratio: 1.21 → Reasonably aligned with projected growth

Debt-to-Equity: 0.05 → Very low debt, adds confidence

EPS: ₹9.99 → Moderate earnings

Dividend Yield: 0.09% → Not attractive for yield-seekers

Qtr Profit Var: -53.5% → Sharp dip in recent quarterly performance

📌 Bottom line: Fundamentally strong company under short-term pressure.

🔍 Technical View

Current Price: ₹580

Slightly below DMA 50: ₹586, but above DMA 200: ₹554

MACD: -5.52 | RSI: 44.0 → Bearish momentum, RSI near oversold zone

Volume: ~7.3L vs Avg 7.0L → Volume steady, but no breakout strength

52W Index: 52.2% → At midpoint, decent upside from 52W low of ₹404

📌 Technicals are mixed, with trend weakening and no confirmation of reversal.

🎯 Swing Trade Strategy

Right now, it's not a trend-following candidate, but could be considered for a rebound-based swing if price stabilizes above ₹586 and RSI improves.

✅ Optimal Entry Price

Buy Range: ₹572–₹585 Near 200-DMA and support zone. Entry only on signs of MACD flattening or RSI > 46.

🚪 Exit Strategy

Target Price: ₹610–₹630 Conservative range below resistance zones around ₹640–₹660.

Stop-Loss: ₹558 Below 200-DMA and support zone.

👜 If Already Holding

→ Watch for price recovery toward ₹610–₹630 → Consider trailing stop-loss around ₹568 if price rises → Exit immediately if RSI drops below 40 or MACD trends further negative

Need a list of midcaps trading near their 200-DMA with positive MACD setups? That could uncover stronger swing entries with better momentum. Happy to help craft that.

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