HOMEFIRST - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | HOMEFIRST | Market Cap | 10,007 Cr. | Current Price | 960 ₹ | High / Low | 1,519 ₹ |
| Stock P/E | 20.2 | Book Value | 386 ₹ | Dividend Yield | 0.39 % | ROCE | 11.4 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,100 ₹ | DMA 200 | 1,151 ₹ |
| Chg in FII Hold | 0.83 % | Chg in DII Hold | -1.23 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 30.6 | MACD | -46.5 | Volume | 4,08,346 | Avg Vol 1Wk | 6,45,729 |
| Low price | 839 ₹ | High price | 1,519 ₹ | PEG Ratio | 0.75 | Debt to equity | 2.40 |
| 52w Index | 17.8 % | Qtr Profit Var | 44.0 % | EPS | 49.4 ₹ | Industry PE | 13.8 |
📊 HOMEFIRST shows decent fundamentals but weak technicals. The RSI at 30.6 indicates oversold conditions, suggesting a possible rebound. However, the MACD (-46.5) and price trading below both the 50 DMA (₹1,100) and 200 DMA (₹1,151) reflect bearish sentiment. Fundamentals are mixed: ROE (16.5%) is solid, and PAT growth (+44%) is strong, but high debt-to-equity (2.40) raises caution. Valuation is moderate with a P/E of 20.2 compared to industry P/E of 13.8, and PEG ratio (0.75) suggests undervaluation relative to growth.
💡 Optimal Entry Price: ₹940–₹970, near current levels and close to support.
📈 Exit Strategy (if already holding): Consider exiting around ₹1,080–₹1,120 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT growth from ₹132 Cr. to ₹140 Cr. (+44%).
- EPS of ₹49.4 supports valuation strength.
- PEG ratio of 0.75 suggests undervaluation relative to growth.
- FII holdings increased (+0.83%), showing foreign investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (2.40) raises financial risk.
- Dividend yield of 0.39% is very low.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
📉 Company Negative News
- DII holdings declined (-1.23%), showing reduced domestic institutional support.
- Weak technical indicators (RSI, MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Quarterly profit growth (+44%) reflects strong earnings momentum.
- FII holdings increased (+0.83%), showing foreign investor confidence.
🏭 Industry
- Housing finance sector remains resilient with steady demand.
- Industry P/E at 13.8 makes HOMEFIRST relatively expensive (P/E 20.2).
🔎 Conclusion
HOMEFIRST is fundamentally stable with strong earnings growth but faces short-term technical weakness and high leverage. It may be suitable for swing trading if entered near ₹940–₹970, with a target around ₹1,080–₹1,120. Traders should monitor RSI recovery and volume trends before committing heavily.