RBLBANK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.9

📊 Based on the given parameters, RBLBANK shows weak fundamentals for swing trading. The high P/E ratio (38.5 vs industry 14.7), low ROE (4.57%), and declining quarterly profits (-19.8%) indicate poor efficiency and overvaluation. Technical indicators (RSI 43.1, MACD negative at -2.69) suggest bearish momentum. While DII inflows provide some support, FII outflows and high leverage (debt-to-equity 8.32) increase risk.

💡 Optimal Entry Price: Around 285–290 ₹ (near DMA 200 support).

🚪 Exit Strategy: If already holding, consider exiting near 315–320 ₹ resistance or on breakdown below 285 ₹.

✅ Positive

• 📊 EPS at 7.87 ₹, supporting valuation base
• 📈 DII holdings increased (+0.91%)
• 📊 Market cap of 18,528 Cr provides scale
• 📉 PEG ratio at 0.31, indicating some growth potential

⚠️ Limitation

• 📉 High P/E ratio (38.5 vs industry 14.7)
• 📊 Low ROE (4.57%) and ROCE (6.04%)
• 📉 Weak dividend yield (0.32%)
• 📊 High debt-to-equity ratio (8.32), leverage risk

🚨 Company Negative News

• 📉 Decline in FII holdings (-2.07%)
• 📊 Quarterly PAT dropped (179 Cr vs 200 Cr)

🌟 Company Positive News

• 📈 DII inflows (+0.91%) show domestic investor confidence
• 📊 Stable book value (259 ₹) near current price

🏭 Industry

• 📊 Industry PE at 14.7, much lower than RBLBANK’s valuation
• 📈 Banking sector showing moderate growth but with margin pressures

📌 Conclusion

RBLBANK is not an ideal swing trade candidate due to overvaluation, weak profitability, and bearish technical signals. Entry near 285–290 ₹ offers limited upside, while exits should be targeted near 315–320 ₹. Risk management is crucial given high leverage and declining quarterly profits.

I can also prepare a comparison of RBLBANK with another mid-cap private bank to highlight relative swing trade opportunities.