VBL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.2

📊 Analysis Summary

Varun Beverages Ltd (VBL) shows strong technical momentum, robust profitability, and high trading volume, making it a promising candidate for swing trading. Despite a high valuation, its earnings growth and sector leadership support short-term upside potential.

✅ Strengths

MACD: +6.92 & RSI: 67.9

Bullish momentum — nearing overbought but still strong.

Volume Surge: 2.53 Cr vs Avg 1.06 Cr

High participation — confirms breakout strength.

Quarterly PAT Growth: +81% (₹726 Cr → ₹1,317 Cr)

Strong earnings momentum — supports price rally.

ROCE: 24.8% & ROE: 22.5%

Excellent capital efficiency — quality business.

PEG Ratio: 1.10

Reasonable growth-adjusted valuation.

Debt to Equity: 0.12

Low leverage — financially stable.

DII Holding ↑ 1.33%

Domestic institutions showing confidence.

⚠️ Weaknesses

P/E: 60.8 vs Industry PE: 82.4

Expensive — priced for growth, not value.

Book Value: ₹54.3 vs CMP ₹512

High premium — not attractive for value investors.

FII Holding ↓ 1.12%

Foreign investors trimming exposure.

RSI Near 70

Approaching overbought — risk of short-term pullback.

🎯 Optimal Entry Price

Entry Zone: ₹500–₹510

Slight pullback from current levels offers better risk-reward.

Confirmation: Hold if RSI stays below 75 and MACD remains positive.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹545–₹560

Near resistance zone — good level to book profits.

Stop Loss: ₹480

Below DMA 50 — protects against trend reversal.

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