INDIANB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | INDIANB | Market Cap | 1,18,136 Cr. | Current Price | 877 ₹ | High / Low | 923 ₹ |
| Stock P/E | 9.83 | Book Value | 581 ₹ | Dividend Yield | 1.85 % | ROCE | 6.38 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 840 ₹ | DMA 200 | 740 ₹ |
| Chg in FII Hold | 0.96 % | Chg in DII Hold | -0.80 % | PAT Qtr | 3,061 Cr. | PAT Prev Qtr | 3,018 Cr. |
| RSI | 55.4 | MACD | 12.4 | Volume | 20,22,807 | Avg Vol 1Wk | 23,64,027 |
| Low price | 478 ₹ | High price | 923 ₹ | PEG Ratio | 0.24 | Debt to equity | 10.7 |
| 52w Index | 89.6 % | Qtr Profit Var | 7.33 % | EPS | 89.2 ₹ | Industry PE | 7.88 |
📊 Indian Bank shows strong potential for swing trading. The stock is priced at ₹877, trading above both its 50 DMA (₹840) and 200 DMA (₹740), indicating bullish momentum. Technical indicators (RSI 55.4, MACD positive) support continued strength. Fundamentals are solid with ROE 17.1%, EPS ₹89.2, and attractive valuation (P/E 9.83 vs industry 7.88). However, high debt-to-equity (10.7) and weak ROCE (6.38%) warrant caution.
💡 Optimal Entry Price: Around ₹860–870 (near 50 DMA support).
📈 Exit Strategy: If already holding, consider exiting near ₹915–923 resistance levels, or maintain a stop-loss around ₹840.
✅ Positive
- Trading above both 50 DMA and 200 DMA, confirming bullish trend.
- Quarterly PAT improved from ₹3,018 Cr. to ₹3,061 Cr. (+7.33%).
- EPS of ₹89.2 reflects strong profitability.
- PEG ratio of 0.24 suggests undervaluation relative to growth.
- FII holdings increased (+0.96%), showing foreign investor confidence.
⚠️ Limitation
- Debt-to-equity ratio of 10.7 is very high, raising financial risk.
- ROCE at 6.38% is weak, showing limited efficiency.
- DII holdings decreased (-0.80%), reflecting reduced domestic support.
- Volume (20.2 lakh) is slightly below weekly average, showing reduced participation.
📉 Company Negative News
- High leverage could restrict flexibility in adverse market conditions.
- Weak ROCE highlights inefficient capital utilization.
- DII outflows (-0.80%) may dampen sentiment.
📈 Company Positive News
- Quarterly profit growth (+7.33%) supports near-term optimism.
- FII inflows (+0.96%) reflect foreign investor confidence.
- Dividend yield of 1.85% provides steady shareholder returns.
🏦 Industry
- Industry P/E at 7.88 is lower than Indian Bank’s 9.83, but valuation remains attractive given strong EPS.
- Banking sector benefits from credit growth and government reforms, supporting long-term outlook.
🔎 Conclusion
Indian Bank earns a swing trade rating of 4.1. Entry near ₹860–870 offers a favorable risk-reward setup, while profit booking should be considered near ₹915–923. Traders should remain cautious due to high debt and weak ROCE, but strong fundamentals, profitability, and bullish technicals support a positive swing trading opportunity.