KIRLOSBROS - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📉 Kirloskar Brothers shows strong fundamentals and low debt, but weak technicals and earnings pressure suggest a cautious swing setup.

🎯 Optimal Entry Price: ₹1,840–₹1,855

🚪 Exit Target (if already holding): ₹1,925–₹1,950

🔍 Positive

• 📈 ROCE of 20.8% and ROE of 15.8% reflect solid operational efficiency.
• 📈 Debt-to-equity ratio of 0.02 indicates a very strong balance sheet.
• 📈 EPS of ₹30.6 supports earnings visibility.
• 📈 Volume above weekly average (91K vs 56K), showing increased market interest.
• 📈 DII holding increased by 0.11%, suggesting domestic institutional support.

⚠️ Limitation

• 📉 P/E of 63.0 is significantly above industry average (39.8), indicating overvaluation.
• 📉 MACD at -26.0 signals bearish momentum.
• 📉 RSI at 34.6 suggests oversold conditions but weak momentum.
• 📉 Price below both 50 DMA and 200 DMA (₹1,955 and ₹1,913), showing technical resistance.
• 📉 PEG ratio of 1.65 implies valuation is stretched relative to growth.

📉 Company Negative News

• 📉 PAT dropped from ₹47.0 Cr to ₹37.6 Cr, a 40.3% decline QoQ.
• 📉 FII holding declined by 0.26%, reflecting cautious foreign sentiment.

📈 Company Positive News

• 📈 Strong ROCE and ROE metrics support long-term fundamentals.
• 📈 DII inflows and volume surge suggest renewed domestic interest.

⚙️ Industry

• ⚙️ Industrial engineering and pump manufacturing benefit from infrastructure growth and water management projects.
• 📉 Risks include project delays, input cost inflation, and cyclical demand.

✅ Conclusion

• 📉 Kirloskar Brothers is a cautious swing trade candidate with strong fundamentals but weak technicals and earnings pressure.
• 🎯 Entry near ₹1,840–₹1,855 with exit around ₹1,925–₹1,950 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin recovery and order book strength for sustained upside.

I can also compare Kirloskar Brothers with peers like CRI Pumps or WPIL to help you identify stronger swing setups in the industrial pump segment.