JBMA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.9

📉 Swing Trade Analysis: JBMA

JBMA shows signs of recent bullish momentum but is weighed down by valuation concerns and weakening fundamentals. Here's a detailed breakdown

🔍 Technical Indicators

RSI (72.3): Overbought zone — signals potential for short-term correction.

MACD (25.5): Positive momentum, but may be peaking.

Price vs DMA: Current price ₹736 is above both 50-DMA (₹650) and 200-DMA (₹689), indicating a strong uptrend.

Volume: Significantly below weekly average, suggesting fading interest or exhaustion.

📊 Fundamental Snapshot

Valuation: Extremely high P/E of 132 vs industry average of 29.1 — implies overvaluation.

PEG Ratio (-25.2): Negative PEG suggests earnings growth is not supporting the price.

Profitability: ROCE (14.3%) and ROE (12.1%) are modest.

Quarterly PAT Decline: From ₹39.3 Cr to ₹32.1 Cr — a bearish signal.

Debt Load: Debt-to-equity ratio of 1.13 is high, adding financial risk.

Institutional Sentiment: FII holdings declined (-0.45%), DII flat — no strong institutional support.

🎯 Optimal Entry Price

Wait for Pullback: ₹670–₹690

This range is near the 200-DMA and offers a safer entry if RSI cools down.

🚪 Exit Strategy (If Holding)

Target Exit: ₹780–₹800

Lock in gains before potential correction due to overbought RSI and valuation pressure.

Stop Loss: ₹700

Below this level, trend may reverse.

⚖️ Verdict

JBMA is not ideal for swing trading at current levels due to its overbought technicals and stretched valuation. If already holding, consider exiting near ₹780–₹800 to capitalize on recent momentum before a likely pullback.

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