JBMA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.8

📊 JBMA shows weak technicals for swing trading. The RSI at 25.4 indicates the stock is oversold, which may trigger a short-term bounce. However, the very high P/E of 91.9, negative PEG ratio, and debt-to-equity of 1.56 highlight fundamental risks. The optimal entry price would be near 540–550 ₹, close to support levels. If already holding, consider exiting around 610–620 ₹, where resistance from DMA 50 and 200 may cap upside.

✅ Positive

• 📈 PAT improved from 32.1 Cr. to 45.1 Cr. in the latest quarter.
• 💹 ROCE of 14.3% and ROE of 12.1% show moderate efficiency.
• 📊 Strong trading volume (2,28,042) above average weekly volume, indicating active participation.
• 📈 Quarterly profit variation of 48.2% shows growth momentum.

⚠️ Limitation

• 📉 Extremely high P/E of 91.9 compared to industry PE of 30.0.
• 📊 PEG ratio of -17.6 signals poor valuation relative to growth.
• 💸 Dividend yield is very low at 0.16%.
• 📉 Debt-to-equity ratio of 1.56 indicates high leverage risk.

🚨 Company Negative News

• 📉 FII holdings decreased by 0.40%, showing reduced foreign investor confidence.
• 📊 DII holdings also declined slightly (-0.01%).

🌟 Company Positive News

• 📈 PAT growth of 40% QoQ highlights improving profitability.
• 💹 52-week index gain of 21.8% shows resilience despite volatility.

🏭 Industry

• 📊 Industry PE at 30.0 suggests sector is moderately valued compared to JBMA’s high valuation.
• 🌍 Auto ancillary sector benefits from rising demand in the automotive industry.

📌 Conclusion

JBMA is a risky swing trade candidate due to high valuation and leverage. Entry near 540–550 ₹ may offer a short-term rebound, but exit around 610–620 ₹ is advisable if already holding. Oversold RSI supports a possible bounce, yet fundamentals remain stretched, requiring strict stop-loss discipline.

Would you like me to also outline short-term candlestick reversal patterns (like hammer or bullish engulfing) that could confirm the rebound entry zone?