UBL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.1

🍺 UBL Swing Trade Analysis

UBL (United Breweries Ltd.) currently shows weak technical momentum and elevated valuation, making it a cautious swing trade candidate despite a modest earnings recovery.

✅ Positives

Quarterly PAT Growth: ₹97.4 Cr. → ₹184 Cr. — a 6% increase, showing mild earnings improvement.

Debt-to-Equity: 0.14 — low leverage, financially stable.

ROCE: 13.9% / ROE: 10.8% — decent capital efficiency.

DII Sentiment Positive: Domestic institutions increased holdings by 0.20%.

⚠️ Negatives

MACD: -31.3 — strong bearish momentum.

RSI: 35.9 — nearing oversold territory, indicating weak price action.

Price Below DMA 50 & 200: Current price ₹1,799 is below both DMA 50 (₹1,888) and DMA 200 (₹1,962), confirming a downtrend.

Volume Drop: Current volume is ~31% below 1-week average, showing reduced interest.

High P/E (102) vs Industry PE (33.0) — significantly overvalued.

PEG Ratio: 12.8 — growth doesn’t justify valuation.

FII Sentiment Negative: Foreign institutions reduced holdings by 0.19%.

52W Index: 5.14% — near yearly lows, indicating poor price recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹1,770–₹1,790

Enter near recent support only if MACD flattens and RSI begins to rise.

Exit Plan (If Holding)

Target Exit: ₹1,880–₹1,900

Conservative target near 50 DMA.

Stop Loss: ₹1,740

Below recent low to manage downside risk.

UBL is a speculative swing candidate best suited for traders who can monitor technical reversals closely. If you're looking for stronger setups in the FMCG or beverage space, I can help you scan alternatives.

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