KSB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | KSB | Market Cap | 12,403 Cr. | Current Price | 712 ₹ | High / Low | 918 ₹ |
| Stock P/E | 48.3 | Book Value | 84.7 ₹ | Dividend Yield | 0.56 % | ROCE | 24.2 % |
| ROE | 18.0 % | Face Value | 2.00 ₹ | DMA 50 | 735 ₹ | DMA 200 | 772 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 65.0 Cr. | PAT Prev Qtr | 72.7 Cr. |
| RSI | 49.6 | MACD | -13.6 | Volume | 82,172 | Avg Vol 1Wk | 1,17,168 |
| Low price | 582 ₹ | High price | 918 ₹ | PEG Ratio | 2.71 | Debt to equity | 0.00 |
| 52w Index | 38.6 % | Qtr Profit Var | 9.61 % | EPS | 14.7 ₹ | Industry PE | 38.2 |
📊 KSB shows moderate potential for swing trading. The RSI at 49.6 indicates neutrality, while MACD at -13.6 reflects bearish momentum. The PEG ratio of 2.71 suggests the stock is expensive relative to growth. Current price (712 ₹) is below both 50 DMA (735 ₹) and 200 DMA (772 ₹), showing weakness but also potential for a rebound from support levels near 700 ₹. Fundamentals remain strong with ROCE (24.2%) and ROE (18.0%), but valuation is stretched compared to industry peers.
✅ Optimal Entry Price: 700–710 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 740–760 ₹ (near 50 DMA resistance). Trail stop-loss near 690 ₹ to protect downside.
Positive
- 📈 Strong ROCE (24.2%) and ROE (18.0%) highlight efficient capital use.
- 💹 EPS of 14.7 ₹ supports earnings strength.
- 🔒 Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
- 💰 Dividend yield of 0.56% adds investor appeal.
- 📊 Quarterly profit variation (+9.61%) shows earnings improvement.
Limitation
- ⚠️ High P/E (48.3) compared to industry average (38.2) suggests stretched valuation.
- 📉 PEG ratio of 2.71 indicates expensive growth prospects.
- 📉 Current price below both 50 DMA and 200 DMA reflects medium-term weakness.
- 📉 Volume (82K) lower than 1-week average (117K), showing reduced momentum.
Company Negative News
- 📉 Decline in FII holding (-0.06%) signals reduced foreign investor confidence.
- ⚠️ PAT dropped from 72.7 Cr. to 65 Cr., showing earnings pressure.
Company Positive News
- 📈 Increase in DII holding (+0.38%) reflects domestic institutional support.
- 💹 Quarterly profit growth (+9.61%) supports near-term optimism.
Industry
- 🏭 Industry P/E at 38.2 is lower than KSB’s 48.3, suggesting sector valuations are more modest.
- 📊 Sector momentum remains strong with 52-week index gain of 38.6%.
Conclusion
🔎 KSB earns a swing trade rating of 3.8. Entry near 700–710 ₹ provides margin of safety, while exit around 740–760 ₹ aligns with resistance levels. Strong fundamentals and debt-free status support the trade, but high valuation and weak technicals require cautious position sizing and disciplined stop-loss management.