SBFC - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.6

📊 Swing Trade Analysis: SBFC Finance Ltd (SBFC)

SBFC offers a moderately favorable swing trade setup, with solid earnings growth and technical support. While momentum indicators are neutral and valuation is slightly stretched, the stock’s proximity to key moving averages and improving profitability make it a viable short-term candidate.

✅ Strengths

Earnings Growth

PAT Qtr: ₹101 Cr. vs ₹94.4 Cr. → +28.2% growth.

EPS: ₹3.39 → Stable earnings base.

PEG Ratio: 0.43 → Attractive valuation relative to growth.

Technical Support

Current price ₹108 is exactly at DMA50 and above DMA200 (₹101) → Consolidation zone with upward bias.

RSI: 51.4 → Neutral zone, with room to rise.

Institutional Interest

FII Holding ↑ 0.59% → Foreign investor accumulation.

⚠️ Weaknesses

Momentum Weakness

MACD: -0.22 → Mild bearish crossover.

Volume flat (12.73L vs 1-week avg 12.81L) → No surge in interest.

Valuation

P/E: 32.0 vs Industry PE: 24.0 → Slightly overvalued.

Profitability & Leverage

ROCE and ROE: 11.6% → Moderate efficiency.

Debt-to-Equity: 1.65 → High leverage for a financial stock.

No Dividend Yield → No passive income.

DII Holding ↓ 0.68% → Domestic institutions trimming exposure.

🎯 Optimal Entry Price

Buy Zone: ₹104–₹106

Slight pullback from current price, near DMA200 for better risk-reward.

🚪 Exit Strategy (If Holding)

Target Exit: ₹115–₹118

Near recent high and psychological resistance.

Stop Loss: ₹100

Below DMA200 to manage downside risk.

This setup suits technically aware swing traders who can monitor MACD and RSI for confirmation and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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