KOTAKBANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | KOTAKBANK | Market Cap | 4,13,767 Cr. | Current Price | 416 ₹ | High / Low | 460 ₹ |
| Stock P/E | 30.6 | Book Value | 126 ₹ | Dividend Yield | 0.12 % | ROCE | 7.45 % |
| ROE | 15.4 % | Face Value | 1.00 ₹ | DMA 50 | 423 ₹ | DMA 200 | 415 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.86 % | PAT Qtr | 3,446 Cr. | PAT Prev Qtr | 3,253 Cr. |
| RSI | 44.9 | MACD | -5.11 | Volume | 3,64,30,346 | Avg Vol 1Wk | 2,16,04,306 |
| Low price | 375 ₹ | High price | 460 ₹ | PEG Ratio | 1.26 | Debt to equity | 4.42 |
| 52w Index | 47.8 % | Qtr Profit Var | 4.28 % | EPS | 13.6 ₹ | Industry PE | 16.0 |
📊 KOTAKBANK shows fair potential for swing trading. The RSI at 44.9 indicates neutrality, while MACD at -5.11 reflects mild bearish momentum. The PEG ratio of 1.26 suggests valuation is slightly expensive relative to growth, but strong ROE (15.4%) and consistent PAT growth support fundamentals. Current price (416 ₹) is near the 200 DMA (415 ₹) and slightly below the 50 DMA (423 ₹), showing consolidation around support levels. High trading volume (3.64 Cr. vs avg 2.16 Cr.) indicates strong market participation.
✅ Optimal Entry Price: 410–420 ₹ (near 200 DMA support, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 445–455 ₹ (near resistance zone). Trail stop-loss near 400 ₹ to protect downside.
Positive
- 📈 ROE (15.4%) highlights profitability strength.
- 💹 PAT growth from 3,253 Cr. to 3,446 Cr. shows earnings momentum.
- 📊 EPS of 13.6 ₹ supports valuation strength.
- 📊 Strong trading volume indicates active investor participation.
- 📊 52-week index gain of 47.8% reflects sectoral strength.
Limitation
- ⚠️ High P/E (30.6) compared to industry average (16.0) suggests stretched valuation.
- 📉 ROCE (7.45%) is modest compared to peers.
- 📉 Debt-to-equity ratio of 4.42 is high, typical for banks but adds leverage risk.
- 📉 Dividend yield of 0.12% offers limited income appeal.
Company Negative News
- 📉 Decline in FII holding (-0.39%) signals reduced foreign investor confidence.
Company Positive News
- 📈 Increase in DII holding (+0.86%) reflects strong domestic institutional support.
- 💹 Quarterly profit growth (+4.28%) supports near-term optimism.
Industry
- 🏭 Industry P/E at 16.0 is much lower than KOTAKBANK’s 30.6, suggesting sector valuations are more modest.
- 📊 Sector momentum remains strong with 52-week index gain of 47.8%.
Conclusion
🔎 KOTAKBANK earns a swing trade rating of 4.0. Entry near 410–420 ₹ provides margin of safety, while exit around 445–455 ₹ aligns with resistance levels. Strong earnings growth and institutional support back the trade, but high valuation, modest ROCE, and elevated debt levels require cautious position sizing and disciplined stop-loss management.