SBFC - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📊 Based on the given parameters, SBFC shows moderate potential for swing trading. The stock trades at a slightly higher P/E (29.2 vs industry 21.2), but fundamentals like ROCE (11.6%), ROE (11.6%), and EPS (3.61 ₹) provide support. Quarterly PAT growth (109 Cr vs 101 Cr) and positive profit variation (30.0%) are encouraging. Technical indicators (RSI 36.4, MACD -1.53) suggest weak momentum, though the stock is near its DMA 200 (105 ₹), offering a potential support zone. Debt-to-equity (1.80) is relatively high, which adds risk.

💡 Optimal Entry Price: Around 100–102 ₹ (near support and oversold RSI).

🚪 Exit Strategy: If already holding, consider exiting near 115–118 ₹ resistance or on breakdown below 100 ₹.

✅ Positive

• 📈 Quarterly PAT growth (109 Cr vs 101 Cr)
• 📊 Profit variation positive (30.0%)
• 📉 PEG ratio at 0.39, attractive growth-adjusted valuation
• 📊 DII holdings increased (+1.22%), showing domestic investor confidence

⚠️ Limitation

• 📉 High debt-to-equity ratio (1.80)
• 📊 P/E ratio (29.2) higher than industry average (21.2)
• 📉 No dividend yield (0.00%)
• 📊 RSI at 36.4, near oversold zone with weak momentum

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.11%)
• 📊 Trading volumes below average (9,97,777 vs 22,29,902)

🌟 Company Positive News

• 📈 PAT growth quarter-on-quarter
• 📊 Strong DII inflows (+1.22%)

🏭 Industry

• 📊 Industry PE at 21.2, lower than SBFC’s valuation
• 📈 NBFC sector benefiting from credit demand and financial inclusion initiatives

📌 Conclusion

SBFC is a moderately attractive swing trade candidate with improving profits and strong DII support, but high debt and weak technical signals limit upside. Entry near 100–102 ₹ offers a favorable risk-reward setup, while exits should be targeted near 115–118 ₹. Traders should remain cautious and use strict stop-loss management due to elevated leverage and bearish momentum.

I can also prepare a comparison of SBFC with another NBFC peer to highlight relative swing trade opportunities.