SBFC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 Positive

• 📊 Strong technical setup: Price is above both DMA 50 (₹111) and DMA 200 (₹104), indicating bullish momentum.
• 📈 RSI at 62.1 and MACD at 2.14 suggest continued upward trend.
• 📈 PEG ratio of 0.44 indicates attractive valuation relative to growth.
• 📈 PAT improved from ₹101 Cr. to ₹109 Cr., showing consistent earnings growth.
• 📈 DII holding increased by 1.22%, signaling strong domestic institutional confidence.
• 📈 EPS of ₹3.61 and ROE/ROCE of 11.6% reflect solid profitability.

⚠️ Limitation

• 📉 P/E of 32.7 vs industry P/E of 22.6 signals premium valuation.
• 📉 Debt-to-equity ratio of 1.80 is relatively high, indicating leveraged operations.
• 📉 Dividend yield is 0.00%, offering no passive income.
• 📉 FII holding declined by 0.11%, showing cautious foreign sentiment.
• 📉 Volume (29.5 lakh) is below 1-week average (75.1 lakh), suggesting reduced participation.

🚫 Company Negative News

• 📉 Analysts have raised concerns over high leverage and potential margin pressure in the NBFC segment.

✅ Company Positive News

• 🏦 SBFC continues to benefit from strong demand for small business and personal loans in underserved markets.
• 📈 Consistent profit growth and improving asset quality support investor confidence.

🏦 Industry

• 💳 Operates in the NBFC sector, which is growing due to financial inclusion and credit expansion in Tier 2/3 cities.
• 📊 Industry P/E of 22.6 reflects moderate valuation and growth expectations.

🧾 Conclusion

• 📈 SBFC is technically strong and fundamentally sound, making it a good candidate for swing trading with valuation caution.
• 📍 Optimal entry: ₹114–₹116 (near minor support and below recent high).
• 🚪 Exit if held: ₹122–₹124 (near resistance and recent high) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of volume and debt metrics.

I can also compare SBFC’s swing setup with peers like Ujjivan Small Finance or Five Star Business Finance to help you spot stronger short-term opportunities.