KIRLOSBROS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | KIRLOSBROS | Market Cap | 13,607 Cr. | Current Price | 1,712 ₹ | High / Low | 2,476 ₹ |
| Stock P/E | 51.8 | Book Value | 213 ₹ | Dividend Yield | 0.41 % | ROCE | 20.8 % |
| ROE | 15.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,622 ₹ | DMA 200 | 1,698 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.06 % | PAT Qtr | 78.2 Cr. | PAT Prev Qtr | 37.6 Cr. |
| RSI | 55.9 | MACD | 47.9 | Volume | 30,806 | Avg Vol 1Wk | 64,072 |
| Low price | 1,333 ₹ | High price | 2,476 ₹ | PEG Ratio | 1.36 | Debt to equity | 0.02 |
| 52w Index | 33.2 % | Qtr Profit Var | 55.4 % | EPS | 31.7 ₹ | Industry PE | 40.0 |
Analysis: Kirloskar Brothers (KIRLOSBROS) shows strong fundamentals with ROCE of 20.8% and ROE of 15.8%. Quarterly profit growth of 55.4% highlights earnings momentum. The debt-to-equity ratio is very low at 0.02, reflecting financial stability. However, the stock trades at a high P/E of 51.8 compared to the industry average of 40, raising valuation concerns. The PEG ratio of 1.36 also suggests moderate overvaluation relative to growth. Technically, the stock is trading above both 50 DMA (₹1,622) and 200 DMA (₹1,698), showing bullish momentum. RSI at 55.9 and positive MACD confirm strength, though trading volume is below average, indicating limited participation.
Optimal Entry Price: Around ₹1,650–1,700, close to DMA support levels.
Exit Strategy (if already holding): Consider profit booking near ₹1,950–2,000 or maintain a stop-loss below ₹1,600.
✅ Positive
- Strong ROCE (20.8%) and ROE (15.8%).
- Quarterly profit growth of 55.4%.
- Low debt-to-equity ratio (0.02), strong financial stability.
- Stock trading above both 50 DMA and 200 DMA, showing bullish trend.
⚠️ Limitation
- High P/E (51.8) compared to industry average (40).
- PEG ratio of 1.36, suggesting moderate overvaluation.
- Trading volume below weekly average, showing weaker participation.
📰 Company Negative News
- No major negative news reported, but valuation remains a concern.
🌟 Company Positive News
- Strong quarterly profit growth.
- Improved institutional confidence (FII +0.19%, DII +0.06%).
- Stock trading above key moving averages, confirming bullish momentum.
🏭 Industry
- Engineering sector trades at P/E of 40, making Kirloskar relatively expensive.
- Sector benefits from infrastructure demand and industrial growth.
📌 Conclusion
Kirloskar Brothers is a good candidate for swing trading with strong earnings growth, low debt, and bullish technicals. Entry near ₹1,650–1,700 offers favorable risk-reward, while exits should be considered near ₹1,950–2,000. Traders should remain cautious of high valuation and monitor volume trends.