POONAWALLA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.3

📈 Positive

• 📈 PAT growth of 116% QoQ (₹74.2 Cr. vs ₹62.6 Cr.) shows strong earnings rebound.
• 📊 EPS of ₹2.76 and high 52-week index (67.8%) reflect strong price recovery from lows.
• 📈 Volume (15.86 lakh) above 1-week average (13.56 lakh) signals rising interest.
• 📈 Price above DMA 200 (₹431) suggests medium-term support.

⚠️ Limitation

• 📉 RSI at 39.0 and MACD at -4.00 indicate weak momentum and possible short-term downside.
• 📉 Price below DMA 50 (₹485) confirms near-term technical weakness.
• 📉 ROCE (4.77%) and ROE (-1.29%) reflect poor capital efficiency.
• 📉 Debt-to-equity ratio of 3.66 is high, raising financial risk concerns.
• 📉 P/E of 176 vs industry P/E of 22.6 signals extreme overvaluation.
• 📉 No dividend yield, limiting passive income potential.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over high leverage and weak return ratios despite profit recovery.

✅ Company Positive News

• 🏦 POONAWALLA is expanding its financial services footprint, with improving asset quality and disbursement volumes.
• 📈 Recent profitability turnaround has improved investor sentiment.

🏦 Industry

• 💳 Operates in the NBFC and financial services sector, which is cyclical and sensitive to interest rate trends.
• 📊 Industry P/E of 22.6 reflects moderate valuation benchmarks.

🧾 Conclusion

• 📉 POONAWALLA shows signs of recovery but faces valuation, leverage, and technical headwinds.
• 📍 Optimal entry: ₹455–₹465 (near support and below DMA 50).
• 🚪 Exit if held: ₹490–₹500 (near resistance and DMA 50) unless momentum improves.
• ⚠️ Suitable for swing trading only with tight stop-loss and close monitoring of trend reversal signals.

I can also compare POONAWALLA’s swing setup with peers like Bajaj Finance or Muthoot Finance to help refine your strategy.