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IDBI - Swing Trade Analysis with AI Signals

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Rating: 3.8

Last Updated Time : 05 May 26, 03:38 pm

📊 Swing Trade Rating: 3.8

Stock Code IDBI Market Cap 80,493 Cr. Current Price 74.9 ₹ High / Low 118 ₹
Stock P/E 8.46 Book Value 62.9 ₹ Dividend Yield 2.80 % ROCE 6.58 %
ROE 14.9 % Face Value 10.0 ₹ DMA 50 82.5 ₹ DMA 200 91.3 ₹
Chg in FII Hold 0.04 % Chg in DII Hold -0.04 % PAT Qtr 1,943 Cr. PAT Prev Qtr 1,935 Cr.
RSI 44.2 MACD -1.60 Volume 65,74,797 Avg Vol 1Wk 82,28,278
Low price 61.0 ₹ High price 118 ₹ PEG Ratio 0.22 Debt to equity 5.55
52w Index 24.1 % Qtr Profit Var -5.27 % EPS 8.85 ₹ Industry PE 15.1

Analysis: IDBI is trading at ₹74.9, below both its 50 DMA (₹82.5) and 200 DMA (₹91.3), showing a bearish bias. RSI at 44.2 indicates the stock is approaching a potential accumulation zone but not yet oversold. MACD is negative, confirming weak momentum. Valuation looks attractive with a P/E of 8.46 compared to the industry average of 15.1, and EPS of ₹8.85. However, the high debt-to-equity ratio (5.55) and weak ROCE (6.58%) limit upside potential.

Optimal Entry Price: ₹70–72, near support levels.

Exit Strategy (if holding): Target exit around ₹82–85, aligning with 50 DMA resistance.

✅ Positive

  • Low P/E compared to industry average.
  • EPS of ₹8.85 supports earnings strength.
  • Dividend yield of 2.8% adds investor appeal.

⚠️ Limitation

  • High debt-to-equity ratio (5.55).
  • Weak ROCE at 6.58% compared to peers.
  • Quarterly profit variation shows decline (-5.27%).

📉 Company Negative News

  • Momentum indicators weak (MACD negative, RSI mid-range).
  • DII holdings decreased (-0.04%).

📈 Company Positive News

  • PAT stable at ₹1,943 Cr vs ₹1,935 Cr previous quarter.
  • FII holdings increased slightly (+0.04%).

🏭 Industry

  • Industry P/E at 15.1, showing sector trades at higher valuations.
  • Banking sector remains volatile but offers swing trade opportunities.

🔎 Conclusion

IDBI is undervalued relative to peers but faces debt challenges and weak momentum. It is suitable for short-term swing trades with entry near ₹70–72 and exit around ₹82–85. Long-term investors should be cautious due to leverage risks.

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