UBL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📊 UBL shows weak earnings and low volume but has technical support and long-term brand strength. Optimal entry is ₹1,800–₹1,815. If already held, consider exiting near ₹1,850–₹1,880.

📈 Positive

• MACD (2.89) is positive, indicating short-term bullish momentum.
• RSI (53.0) is neutral, offering room for upward movement.
• Trading near 50-DMA (₹1,823) provides a technical support zone.
• Debt-to-equity ratio (0.18) reflects a healthy balance sheet.
• DII holdings increased by 0.31%, showing domestic institutional confidence.

⚠️ Limitation

• Quarterly PAT dropped from ₹184 Cr. to ₹47 Cr., a 64.5% decline.
• P/E (126) is significantly higher than industry average (33.7), indicating overvaluation.
• PEG ratio (15.8) suggests poor growth relative to valuation.
• Volume far below 1-week average may reflect weak market interest.
• Dividend yield (0.55%) is modest for income-focused investors.

🚫 Company Negative News

• FII holdings declined by 0.47%, showing reduced foreign investor confidence.
• Stock has corrected over 21% from its 52-week high of ₹2,300.

✅ Company Positive News

• UBL maintains strong brand equity in the beverages sector with consistent market presence.
• EPS of ₹13.8 and ROCE of 13.9% support long-term operational strength.

🌐 Industry

• UBL operates in the beverages and FMCG sector, which benefits from consumer demand and brand loyalty.
• Industry P/E of 33.7 reflects moderate valuation expectations.

🧾 Conclusion

• UBL is a cautious swing trade candidate with technical support but weak earnings and valuation concerns.
• Optimal entry: ₹1,800–₹1,815 (near support and 50-DMA).
• Exit target: ₹1,850–₹1,880 (near short-term resistance).
• Watch for volume recovery and MACD continuation before confirming entry.

I can chart UBL’s RSI and MACD trends to help you refine your swing trade timing.