VBL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | VBL | Market Cap | 1,79,753 Cr. | Current Price | 532 ₹ | High / Low | 556 ₹ |
| Stock P/E | 64.5 | Book Value | 55.5 ₹ | Dividend Yield | 0.28 % | ROCE | 19.1 % |
| ROE | 14.6 % | Face Value | 2.00 ₹ | DMA 50 | 506 ₹ | DMA 200 | 484 ₹ |
| Chg in FII Hold | -0.80 % | Chg in DII Hold | 0.79 % | PAT Qtr | 788 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 55.8 | MACD | 8.94 | Volume | 86,82,148 | Avg Vol 1Wk | 62,78,822 |
| Low price | 381 ₹ | High price | 556 ₹ | PEG Ratio | 2.53 | Debt to equity | 0.02 |
| 52w Index | 86.1 % | Qtr Profit Var | 16.2 % | EPS | 8.24 ₹ | Industry PE | 91.8 |
📊 VBL demonstrates strong momentum with RSI at 55.8 and MACD at 8.94, supported by price trading above both 50DMA (506 ₹) and 200DMA (484 ₹). Fundamentals are decent with ROCE at 19.1% and ROE at 14.6%, though valuations remain stretched (P/E 64.5 vs industry 91.8, PEG ratio 2.53). Quarterly profit growth (+16.2%) adds strength, but declining FII holdings (-0.80%) raise caution. Overall, the stock is a solid candidate for swing trading with disciplined risk management.
💡 Optimal Entry Price: Around 515–525 ₹ (near 50DMA support)
📈 Exit Strategy if Holding: Consider booking profits near 550–555 ₹ resistance zone, or trail stop-loss below 500 ₹.
Positive
- ✅ Strong ROCE (19.1%) and ROE (14.6%) support efficiency.
- ✅ Quarterly PAT growth (+16.2%) shows earnings momentum.
- ✅ Price above both 50DMA and 200DMA, confirming bullish trend.
- ✅ Debt-to-equity ratio at 0.02 ensures financial stability.
- ✅ DII holdings increased (+0.79%), showing domestic institutional support.
Limitation
- ⚠️ High valuation (P/E 64.5 vs industry 91.8).
- ⚠️ PEG ratio of 2.53 suggests growth may not fully justify price.
- ⚠️ Decline in FII holdings (-0.80%) signals reduced foreign confidence.
- ⚠️ EPS of 8.24 ₹ is modest relative to valuation.
Company Negative News
- 📉 No major external negative news, but premium valuation and reduced FII interest are concerns.
Company Positive News
- 📈 Quarterly profit growth continues steadily (+16.2%).
- 📈 Strong trading volume (86.8 lakh vs avg 62.7 lakh) indicates active participation.
Industry
- 🏭 Industry P/E at 91.8, higher than company’s valuation, highlighting relative undervaluation within sector.
- 🏭 Sector outlook remains positive with strong demand drivers.
Conclusion
🔎 VBL is a fundamentally sound and technically strong swing trade candidate. Entry near 515–525 ₹ offers favorable risk-reward, while exits should be targeted around 550–555 ₹. Traders should remain cautious of high valuations and declining FII interest, maintaining strict stop-loss discipline.
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