JBMA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 JBMA (JBM Auto Ltd) Swing Trade Analysis

JBMA presents a mixed setup for swing trading, with some cautionary signals. Here's the breakdown

✅ Strengths

Quarterly Profit Growth: PAT increased from ₹52.6 Cr. to ₹66.3 Cr., showing earnings momentum.

ROE of 16%: Indicates decent profitability.

Price Near Support: Current price ₹647 is below both 50 DMA (₹661) and 200 DMA (₹711), suggesting potential for a rebound.

RSI at 47.5: Neutral zone, not overbought or oversold — could swing either way.

⚠️ Weaknesses

High Valuation: P/E of 75.8 vs industry average of 31.2 and PEG ratio of 8.37 — stock is richly valued.

MACD Negative: At -5.02, indicates bearish momentum.

Volume Drop: Current volume (2.73L) is significantly below 1-week average (9.78L), showing waning interest.

Debt-to-Equity Ratio of 1.95: High leverage adds financial risk.

FII Holding Decline: -0.45% change suggests reduced institutional confidence.

🎯 Optimal Entry Price

Entry Zone: ₹620–₹635

This range is near recent support and offers a lower-risk entry if bullish reversal signals appear.

Look for bullish candlestick patterns or MACD crossover confirmation.

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹680–₹700

This aligns with resistance near 50 DMA and psychological round numbers.

Stop Loss: ₹615

Protect against downside if bearish momentum continues.

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