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HOMEFIRST - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

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Swing Trade Rating: 3.9

Stock Code	HOMEFIRST	Market Cap	12,002 Cr.	Current Price	1,155 ₹	High / Low	1,519 ₹
Stock P/E	26.5	Book Value	388 ₹	Dividend Yield	0.31 %	ROCE	11.4 %
ROE	16.5 %	Face Value	2.00 ₹	DMA 50	1,176 ₹	DMA 200	1,189 ₹
Chg in FII Hold	2.80 %	Chg in DII Hold	6.95 %	PAT Qtr	132 Cr.	PAT Prev Qtr	119 Cr.
RSI	49.2	MACD	-0.71	Volume	77,928	Avg Vol 1Wk	1,04,835
Low price	839 ₹	High price	1,519 ₹	PEG Ratio	0.98	Debt to equity	2.40
52w Index	46.5 %	Qtr Profit Var	43.0 %	EPS	46.7 ₹	Industry PE	18.0

📊 HomeFirst (HOMEFIRST) shows moderate potential for swing trading. The stock is trading slightly below its 50 DMA (₹1,176) and 200 DMA (₹1,189), reflecting short-term weakness. RSI at 49.2 indicates neutral momentum, while MACD negative (-0.71) suggests mild bearishness. An optimal entry would be near ₹1,120–₹1,140. If already holding, consider exiting around ₹1,200–₹1,220, where resistance from DMA levels is expected.

Positive

✅ EPS of ₹46.7 supports profitability.

✅ Quarterly PAT growth from ₹119 Cr. to ₹132 Cr. (+43%) highlights strong earnings momentum.

✅ FII holdings increased by 2.80%, showing foreign investor confidence.

✅ DII holdings increased by 6.95%, reflecting strong domestic institutional support.

✅ PEG ratio of 0.98 suggests fair valuation relative to growth.

Limitation

⚠️ Debt-to-equity ratio of 2.40 indicates high leverage risk.

⚠️ Dividend yield of 0.31% is very low, offering limited income for investors.

⚠️ ROCE (11.4%) is modest compared to peers.

⚠️ Trading below DMA levels signals weak technical momentum.

Company Negative News

❌ High debt levels may limit flexibility in volatile market conditions.

❌ Weak technical indicators with MACD negative and price below DMA levels.

Company Positive News

🌟 Strong quarterly profit growth boosts investor confidence.

🌟 High institutional interest from both FII and DII investors supports market optimism.

🌟 Fair PEG ratio indicates balanced valuation relative to growth.

Industry

🏭 Housing finance industry trades at PE of 18, lower than HomeFirst’s PE of 26.5, suggesting relative overvaluation.

🏭 Sector growth driven by urban housing demand and affordable finance schemes supports long-term prospects.

Conclusion

📌 HomeFirst is a moderately strong candidate for swing trading, supported by profit growth and institutional interest. Entry near ₹1,120–₹1,140 is optimal, with exit around ₹1,200–₹1,220. Traders should be cautious of high debt levels and weak technical signals, but fundamentals and investor backing provide stability.

I can also prepare a peer comparison with other housing finance companies like LIC Housing Finance or Can Fin Homes to highlight relative swing trade opportunities.

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