POLICYBZR - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Swing Trade Analysis: Policybazaar (POLICYBZR)

Swing Trade Rating: 2.8

✅ Positives

Low Debt: Healthy debt-to-equity ratio of 0.05.

Strong Profit Growth: Quarterly PAT jumped 183% (₹71.5 Cr. to ₹171 Cr.) — impressive improvement.

Institutional Interest: FII (+0.85%) and DII (+0.32%) holdings have increased, signaling confidence.

⚠️ Challenges

Extremely High P/E (260): Indicates the stock is priced for very high growth, which adds risk.

Poor Return Metrics: ROE (5.13%) and ROCE (5.90%) are weak — profitability is low despite valuation.

Technical Indicators

RSI (46.1): Neutral zone, lacking bullish momentum.

MACD (-10.2): Negative crossover implies continued short-term weakness.

Price Near 50 DMA (₹1,797): Price is hovering near short-term average — no clear breakout signal.

PEG Ratio of 7.77: Indicates severe overvaluation compared to earnings growth.

Low EPS (₹7.69): Despite high price, earnings per share remain low.

🎯 Optimal Entry Price

Entry Zone: ₹1,650–1,700

Near 200 DMA (₹1,693) — historically strong support area.

Wait for bullish signs in RSI (above 50) and MACD recovery before entering.

🧭 Exit Strategy (If Holding Already)

Profit Booking Target: ₹1,870–1,900

Look for bounce towards recent highs if volumes surge.

Stop-Loss Level: ₹1,630

Below 200 DMA, to guard against downside risk if momentum breaks further.

This trade hinges heavily on timing and signals — the fundamentals aren’t strong enough to justify an impulsive swing. Policybazaar’s dramatic quarterly profit bump is eye-catching, but without technical strength, entry needs confirmation. Want to look at other high-growth plays or plot this on a chart? I’m game.

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