VBL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.9

🥤 VBL (Varun Beverages Ltd.) Swing Trade Analysis

VBL presents a moderately strong swing trade setup, supported by solid fundamentals and institutional interest, though short-term technical indicators suggest caution.

✅ Strengths

Fundamental Quality

ROCE: 23.8% / ROE: 20.1% — excellent capital efficiency.

EPS: ₹7.57 — supports valuation.

Debt-to-Equity: 0.02 — virtually debt-free.

PEG Ratio: 0.93 — fairly valued relative to growth.

DII Sentiment Positive: Domestic institutions increased holdings by 1.33%.

Quarterly PAT Growth: ₹678 Cr. → ₹1,160 Cr. — strong earnings momentum.

Volume Strength: Current volume is ~11% above 1-week average, indicating rising interest.

⚠️ Weaknesses

MACD: -7.91 — bearish crossover, signaling short-term weakness.

RSI: 42.6 — neutral-to-weak zone, lacking momentum.

Price Below DMA 50 & 200: Current price ₹474 is below DMA 50 (₹488) and DMA 200 (₹513), indicating a downtrend.

High P/E (63.1) vs Industry PE (84.7) — relatively expensive.

FII Sentiment Negative: Foreign institutions reduced holdings by 1.12%.

52W Index: 22.2% — near yearly lows, suggesting limited recovery so far.

🎯 Trade Strategy

Optimal Entry Price: ₹460–₹470

Enter near recent support if MACD flattens and RSI trends upward.

Exit Plan (If Holding)

Target Exit: ₹495–₹510

Conservative target near DMA 200.

Stop Loss: ₹450

Below recent support to manage downside risk.

VBL is a fair swing candidate for traders who prioritize strong fundamentals and can wait for technical confirmation. Let me know if you'd like to compare it with other FMCG or beverage stocks.

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