PNB - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.8

📊 Based on the given parameters, PNB shows moderate potential for swing trading. The valuation is close to industry average (P/E 8.77 vs 7.89), with strong quarterly PAT growth and healthy dividend yield. Technical indicators (RSI 47.3, MACD slightly negative) suggest consolidation with potential for upward momentum. However, high debt-to-equity (12.5) remains a concern.

💡 Optimal Entry Price: Around 115–118 ₹ (near book value and DMA 50 support).

🚪 Exit Strategy: If already holding, consider exiting near 125–128 ₹ resistance or on breakdown below 115 ₹.

✅ Positive

• 📈 Strong quarterly PAT growth (4,904 Cr vs 1,675 Cr)
• 📊 EPS at 13.6 ₹, supportive for valuation
• 💰 Dividend yield of 2.43%, attractive for investors
• 📊 ROE at 14.2%, decent profitability

⚠️ Limitation

• 📉 High debt-to-equity ratio (12.5), leverage risk
• 📊 ROCE at 6.30%, relatively weak efficiency
• 📉 MACD negative (-0.76), short-term bearish signal
• 📊 Volume lower than average, reduced momentum

🚨 Company Negative News

• 📉 Elevated debt levels impacting long-term stability
• 📊 Weak ROCE compared to peers

🌟 Company Positive News

• 📈 Quarterly profit variation positive (14.0%)
• 📊 FII (+0.15%) and DII (+0.48%) holdings increased

🏭 Industry

• 📊 Industry PE at 7.89, aligned with PNB’s valuation
• 📈 Banking sector showing stable growth with improving profitability

📌 Conclusion

PNB is a fair candidate for swing trading with balanced valuation and improving profitability. Entry near 115–118 ₹ offers a good risk-reward setup, while exits should be targeted near 125–128 ₹. Caution is advised due to high leverage and weak ROCE, making strict stop-loss management essential.

Would you like me to also prepare a side-by-side swing trade comparison of PNB vs another PSU bank to highlight relative strengths?