HBLENGINE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | HBLENGINE | Market Cap | 22,151 Cr. | Current Price | 799 ₹ | High / Low | 1,122 ₹ |
| Stock P/E | 33.8 | Book Value | 70.4 ₹ | Dividend Yield | 0.13 % | ROCE | 27.0 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 829 ₹ | DMA 200 | 770 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 0.18 % | PAT Qtr | 400 Cr. | PAT Prev Qtr | 142 Cr. |
| RSI | 49.2 | MACD | -24.9 | Volume | 10,04,332 | Avg Vol 1Wk | 21,69,443 |
| Low price | 404 ₹ | High price | 1,122 ₹ | PEG Ratio | 0.69 | Debt to equity | 0.04 |
| 52w Index | 55.0 % | Qtr Profit Var | 397 % | EPS | 22.9 ₹ | Industry PE | 26.1 |
📊 HBL Power Systems (HBLENGINE) shows strong fundamentals with excellent ROCE and ROE, low debt, and robust profit growth. Technical indicators (RSI ~49 neutral, MACD negative, price above 200 DMA but slightly below 50 DMA) suggest consolidation with potential upside. It is a good candidate for swing trading, though short-term momentum remains weak.
💡 Optimal Entry Price: Around 780–800 ₹ (near current support zone).
📈 Exit Strategy: If already holding, consider booking profits near 850–870 ₹ resistance, or exit if price falls below 770 ₹.
Positive ✅
- ROCE (27.0%) and ROE (20.2%) indicate strong efficiency.
- Debt-to-equity ratio of 0.04 shows negligible leverage risk.
- Quarterly PAT surged from 142 Cr. to 400 Cr. (+397%), reflecting strong earnings momentum.
- EPS of 22.9 ₹ supports profitability visibility.
- PEG ratio of 0.69 suggests fair valuation relative to growth.
- DII holdings increased (+0.18%), showing domestic institutional support.
Limitation ⚠️
- P/E of 33.8 higher than industry average (26.1), indicating premium valuation.
- Dividend yield of 0.13% is negligible.
- MACD negative (-24.9) signals weak short-term momentum.
- RSI at 49.2 indicates consolidation rather than strong bullishness.
- Trading volume (10 lakh) below 1-week average (21 lakh), suggesting reduced participation.
- FII holdings declined (-1.23%), showing reduced foreign investor confidence.
Company Negative News 📉
- No major external negative news reported, but decline in FII holdings and weak technical signals are concerns.
Company Positive News 📈
- Strong quarterly profit growth (+397%).
- Institutional support from DIIs reflects confidence in future performance.
Industry 🌐
- Industry P/E at 26.1 highlights sector trades at a fair valuation compared to HBL’s premium.
- Power and engineering sector benefits from infrastructure growth and rising demand for energy solutions.
Conclusion 📝
HBL Power Systems is a strong candidate for swing trading with robust fundamentals, strong profit growth, and low debt. Entry near 780–800 ₹ offers favorable risk-reward. Exit around 850–870 ₹ or below 770 ₹ if momentum weakens. Suitable for short-term trades, though traders should monitor institutional flows and technical signals closely.