KIRLOSBROS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

⚙️ Swing Trade Analysis: KIRLOSBROS (Kirloskar Brothers Ltd.)

Kirloskar Brothers presents a technically strong and fundamentally stable swing trade setup, supported by solid profitability and low leverage. However, valuation and earnings volatility suggest a disciplined approach.

✅ Strengths

Technical Momentum: Price ₹2,075 is above both 50-DMA (₹1,988) and 200-DMA (₹1,899), indicating a bullish trend.

MACD (18.0): Strongly positive — confirms upward momentum.

RSI (61.2): Bullish but not overbought — room for short-term upside.

Profitability: ROCE (20.8%) and ROE (15.8%) are solid — efficient capital deployment.

Debt-to-Equity: Extremely low at 0.01 — excellent financial health.

Institutional Sentiment: FII (+0.17%) and DII (+0.18%) holdings increased — mild bullish signal.

⚠️ Weaknesses

Valuation: P/E of 63.3 is significantly above industry average (44.8), and PEG ratio of 1.66 suggests overvaluation.

Earnings Volatility: PAT dropped from ₹100 Cr to ₹47 Cr — a notable decline.

Volume: Below weekly average — suggests reduced short-term interest.

Book Value: ₹209 vs current price ₹2,075 — trading at a high premium.

52w Index (61.9%): Trading in mid-range — sentiment is stable but not euphoric.

🎯 Optimal Entry Price

Buy Zone: ₹2,000–₹2,030

Near 50-DMA support; ideal for initiating a swing position with limited downside.

🚪 Exit Strategy (If Holding)

Target Exit: ₹2,250–₹2,300

Near short-term resistance zone; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹1,950

Below this level, trend support weakens.

⚖️ Verdict

KIRLOSBROS is a strong swing trade candidate, especially for traders seeking momentum in a fundamentally sound stock. Entry near support and disciplined exit near resistance can yield favorable short-term returns.

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