KIRLOSENG - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

⚙️ Swing Trade Analysis: KIRLOSENG (Kirloskar Oil Engines Ltd.)

Kirloskar Oil Engines offers a technically stable and fundamentally sound swing trade setup, with decent profitability and low debt. However, weak volume and recent FII outflows suggest caution.

✅ Strengths

Technical Momentum: Price ₹941 is above both 50-DMA (₹900) and 200-DMA (₹893), indicating a bullish trend.

MACD (2.94): Positive — confirms upward momentum.

RSI (58.9): Neutral to bullish — room for upside before overbought territory.

Profitability: ROCE (18.4%) and ROE (14.3%) are solid — efficient capital deployment.

Valuation: P/E of 33.8 is below industry average (44.8), and PEG ratio of 0.93 suggests fair growth-adjusted pricing.

Debt-to-Equity: Very low at 0.06 — excellent financial health.

DII Sentiment: Increased holdings (+0.62%) — mildly bullish.

⚠️ Weaknesses

Volume: Significantly below weekly average — reduced short-term interest.

FII Sentiment: Declined (-0.67%) — mildly bearish.

Quarterly Profit Volatility: PAT rose from ₹106 Cr to ₹123 Cr, but Qtr Profit Var is negative (-8.85%) — signals inconsistency.

52w Index (53.2%): Trading in mid-range — sentiment is stable but not euphoric.

Book Value: ₹205 vs current price ₹941 — trading at a premium.

🎯 Optimal Entry Price

Buy Zone: ₹910–₹925

Near 50-DMA support; wait for volume to improve and RSI to cross 60 for confirmation.

🚪 Exit Strategy (If Holding)

Target Exit: ₹980–₹1,020

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

Stop Loss: ₹880

Below this level, trend support weakens.

⚖️ Verdict

KIRLOSENG is a good swing trade candidate, especially for traders seeking a technically sound stock with solid fundamentals. Entry near support and disciplined exit near resistance can yield favorable short-term returns.

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