VBL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | VBL | Market Cap | 1,36,840 Cr. | Current Price | 405 ₹ | High / Low | 568 ₹ |
| Stock P/E | 53.2 | Book Value | 55.5 ₹ | Dividend Yield | 0.25 % | ROCE | 19.1 % |
| ROE | 14.6 % | Face Value | 2.00 ₹ | DMA 50 | 448 ₹ | DMA 200 | 476 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | 1.78 % | PAT Qtr | 261 Cr. | PAT Prev Qtr | 577 Cr. |
| RSI | 33.1 | MACD | -14.4 | Volume | 59,36,274 | Avg Vol 1Wk | 68,80,429 |
| Low price | 400 ₹ | High price | 568 ₹ | PEG Ratio | 2.09 | Debt to equity | 0.02 |
| 52w Index | 2.50 % | Qtr Profit Var | 25.1 % | EPS | 7.91 ₹ | Industry PE | 46.6 |
📊 VBL currently shows weak potential for swing trading. The RSI at 33.1 indicates oversold conditions, which could lead to a short-term rebound. However, the MACD is negative (-14.4), and the stock is trading below both its 50 DMA (448 ₹) and 200 DMA (476 ₹), reflecting bearish momentum. Valuation is stretched (P/E 53.2 vs industry 46.6, PEG 2.09), and quarterly profits have dropped sharply (261 Cr. vs 577 Cr.). While institutional support from DIIs (+1.78%) is a positive, FII holdings have declined significantly (-1.62%). Overall, this is a risky swing candidate.
💡 Optimal Entry Price: Around 400–410 ₹ (near support zone).
📈 Exit Strategy if Holding: Consider exiting near 445–455 ₹ (close to 50 DMA resistance) unless momentum improves.
Positive
- Strong ROCE (19.1%) and ROE (14.6%) show decent efficiency.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- DII holdings increased (+1.78%), showing domestic institutional support.
Limitation
- High valuation compared to peers (P/E 53.2 vs industry 46.6).
- Quarterly PAT dropped sharply (261 Cr. vs 577 Cr.).
- Stock trading below DMA 50 and DMA 200, showing weak technicals.
Company Negative News
- FII holdings reduced significantly (-1.62%).
- Quarterly profit decline highlights earnings pressure.
- Weak 52-week performance (Index only 2.5%).
Company Positive News
- DII holdings increased (+1.78%), showing confidence from domestic institutions.
- EPS at 7.91 ₹ supports valuation stability.
Industry
- Industry P/E at 46.6 is lower than VBL’s, highlighting overvaluation.
- Sector remains stable but valuations are stretched for premium players.
Conclusion
⚖️ VBL is financially stable but technically weak and overvalued. While oversold RSI may trigger a short-term bounce, declining profits and bearish signals make it risky. Entry near 400–410 ₹ with an exit around 445–455 ₹ is possible, but strict risk management is essential.