IOB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | IOB | Market Cap | 67,532 Cr. | Current Price | 35.1 ₹ | High / Low | 52.4 ₹ |
| Stock P/E | 14.2 | Book Value | 18.8 ₹ | Dividend Yield | 0.00 % | ROCE | 5.95 % |
| ROE | 11.0 % | Face Value | 10.0 ₹ | DMA 50 | 36.0 ₹ | DMA 200 | 39.2 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 1.96 % | PAT Qtr | 1,365 Cr. | PAT Prev Qtr | 1,226 Cr. |
| RSI | 48.6 | MACD | -0.34 | Volume | 60,23,844 | Avg Vol 1Wk | 73,57,506 |
| Low price | 33.0 ₹ | High price | 52.4 ₹ | PEG Ratio | 0.57 | Debt to equity | 10.9 |
| 52w Index | 10.8 % | Qtr Profit Var | 56.2 % | EPS | 2.47 ₹ | Industry PE | 7.88 |
📊 Indian Overseas Bank (IOB) shows moderate potential for swing trading. The stock is priced at ₹35.1, slightly below its 50 DMA (₹36.0) and 200 DMA (₹39.2), indicating short-term weakness. Technical indicators (RSI 48.6, MACD negative) suggest consolidation. Fundamentals are mixed: strong quarterly profit growth (+56.2%) and rising institutional support, but high debt-to-equity (10.9) and weak ROCE (5.95%) limit attractiveness.
💡 Optimal Entry Price: Around ₹34–35 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹39–40 resistance levels, or maintain a stop-loss around ₹33.
✅ Positive
- Quarterly PAT improved from ₹1,226 Cr. to ₹1,365 Cr. (+56.2%).
- EPS of ₹2.47 reflects steady profitability.
- DII holdings increased (+1.96%), showing strong domestic institutional support.
- PEG ratio of 0.57 suggests reasonable valuation relative to growth.
⚠️ Limitation
- Debt-to-equity ratio of 10.9 is very high, raising financial risk.
- ROCE at 5.95% is weak, showing limited efficiency.
- Dividend yield is 0%, offering no income support.
- Stock trading below both 50 DMA and 200 DMA signals weakness.
📉 Company Negative News
- MACD at -0.34 shows bearish crossover momentum.
- Trading volume (60.2 lakh) is below weekly average, showing reduced participation.
- Stock trading far below 52-week high (₹52.4), limiting bullish sentiment.
📈 Company Positive News
- Strong quarterly profit growth (+56.2%) boosts investor confidence.
- DII inflows (+1.96%) reflect domestic institutional support.
- FII holdings increased slightly (+0.04%), showing marginal foreign interest.
🏦 Industry
- Industry P/E at 7.88 is lower than IOB’s 14.2, suggesting relative overvaluation.
- Banking sector benefits from credit growth and government reforms, but high leverage remains a concern.
🔎 Conclusion
IOB earns a swing trade rating of 3.8. Entry near ₹34–35 offers a safer risk-reward setup, while profit booking should be considered near ₹39–40. Traders should remain cautious due to high debt and weak efficiency, but strong profit growth and institutional support provide short-term trading opportunities.