JBCHEPHARM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

📊 Analysis of JBCHEPHARM for Swing Trading

J.B. Chemicals & Pharmaceuticals Ltd. (JBCHEPHARM) presents a fairly attractive swing trade setup, backed by strong fundamentals and a recent earnings boost, though technical indicators suggest caution in timing the entry.

✅ Strengths

Solid Fundamentals

ROCE of 25.9% and ROE of 20.2% reflect efficient capital deployment and profitability.

Debt-free structure (Debt-to-equity: 0.00) enhances financial stability.

Earnings Growth

PAT increased from ₹150 Cr. to ₹198 Cr., a healthy 14.2% quarterly jump.

Valuation

PEG ratio of 1.64 is reasonable for a growth stock.

EPS of ₹43.5 supports the current valuation.

Volume Support

Current volume exceeds weekly average, indicating rising interest.

⚠️ Weaknesses

Technical Pressure

RSI at 43.6 and MACD at -5.87 suggest bearish momentum.

Trading below both 50-DMA (₹1,705) and 200-DMA (₹1,699), which may act as resistance.

FII Holding Decline (-0.53%): Slight reduction in foreign institutional interest.

High P/E (39.1): Above industry average (33.4), indicating premium valuation.

Dividend Yield Low (0.92%): Not compelling for income-focused investors.

📈 Optimal Entry Price

Entry Zone: ₹1,675–₹1,685

Slightly below 50-DMA, allowing entry on a pullback with better risk-reward.

📉 Exit Strategy (If Already Holding)

Target Exit Price: ₹1,740–₹1,770

Just below recent resistance and 52-week high zone.

Stop Loss: ₹1,640

To manage downside risk if bearish momentum continues.

This setup favors traders who can monitor technical reversals and act swiftly. Let me know if you'd like help tracking this trade or setting alerts.

Edit in a page