J&KBANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | J&KBANK | Market Cap | 14,504 Cr. | Current Price | 132 ₹ | High / Low | 136 ₹ |
| Stock P/E | 6.75 | Book Value | 143 ₹ | Dividend Yield | 1.63 % | ROCE | 6.14 % |
| ROE | 15.7 % | Face Value | 1.00 ₹ | DMA 50 | 121 ₹ | DMA 200 | 110 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | 0.16 % | PAT Qtr | 587 Cr. | PAT Prev Qtr | 494 Cr. |
| RSI | 58.1 | MACD | 3.61 | Volume | 43,95,968 | Avg Vol 1Wk | 66,26,852 |
| Low price | 87.3 ₹ | High price | 136 ₹ | PEG Ratio | 0.11 | Debt to equity | 10.0 |
| 52w Index | 91.6 % | Qtr Profit Var | 10.4 % | EPS | 19.5 ₹ | Industry PE | 15.1 |
📊 J&K Bank (J&KBANK) shows strong potential for swing trading. The RSI at 58.1 indicates healthy momentum, while the MACD (3.61) is positive, reflecting bullish signals. The current price (₹132) is above both the 50 DMA (₹121) and 200 DMA (₹110), showing technical strength. Fundamentals are attractive with a very low P/E (6.75) compared to industry PE (15.1), strong ROE (15.7%), and a PEG ratio of 0.11 suggesting undervaluation relative to growth. PAT improved sequentially (₹494 Cr. → ₹587 Cr.), highlighting earnings momentum. Debt-to-equity is high (10.0), which is typical for banks but adds leverage risk.
💡 Optimal Entry Price: Around ₹128–₹132, near DMA support.
📈 Exit Strategy (if already holding): Consider booking profits near ₹135–₹136, close to the recent high, with extended targets at ₹140 if momentum continues.
✅ Positive
- Low P/E ratio (6.75) compared to industry PE (15.1) highlights undervaluation.
- Strong ROE (15.7%) reflects efficient profitability.
- Quarterly PAT improved from ₹494 Cr. to ₹587 Cr.
- Dividend yield of 1.63% provides steady returns.
- Price trading above both 50 DMA and 200 DMA shows technical strength.
⚠️ Limitation
- High debt-to-equity ratio (10.0), typical for banks but adds risk.
- ROCE (6.14%) is modest compared to peers.
- Trading volume slightly below weekly average, indicating reduced activity.
📉 Company Negative News
- Stock trading close to 52-week high (₹136), limiting near-term upside.
- High leverage could pressure margins in volatile conditions.
📈 Company Positive News
- Quarterly profit variation shows 10.4% growth.
- EPS of ₹19.5 reflects strong earnings power.
- FII (+0.21%) and DII (+0.16%) holdings increased, signaling investor confidence.
🏭 Industry
- Industry PE at 15.1 vs. J&KBANK’s PE of 6.75 highlights undervaluation.
- Banking sector benefits from credit growth and rising demand for financial services.
🔎 Conclusion
J&KBANK is a strong swing trade candidate with undervaluation, improving profits, and technical strength. Entry around ₹128–₹132 offers a favorable setup, with exits near ₹135–₹136. While leverage is high, strong fundamentals and investor confidence make it attractive for short-term traders.