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BAJAJHFL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.0

Stock Code BAJAJHFL Market Cap 72,641 Cr. Current Price 87.2 ₹ High / Low 129 ₹
Stock P/E 28.3 Book Value 27.0 ₹ Dividend Yield 0.00 % ROCE 8.84 %
ROE 12.1 % Face Value 10.0 ₹ DMA 50 86.8 ₹ DMA 200 98.9 ₹
Chg in FII Hold 0.05 % Chg in DII Hold -0.21 % PAT Qtr 669 Cr. PAT Prev Qtr 675 Cr.
RSI 51.3 MACD 1.60 Volume 52,12,146 Avg Vol 1Wk 84,22,959
Low price 72.6 ₹ High price 129 ₹ PEG Ratio 1.05 Debt to equity 4.60
52w Index 26.0 % Qtr Profit Var 14.1 % EPS 3.07 ₹ Industry PE 15.1

📉 BAJAJHFL is trading at ₹87.2, near its 50 DMA (₹86.8) but below the 200 DMA (₹98.9), showing weak medium-term alignment. RSI at 51.3 indicates neutral momentum, while MACD at 1.60 suggests mild bullish divergence. Bollinger Bands show price consolidating near the mid-range. Current volume (52,12,146) is below the 1-week average (84,22,959), reflecting reduced participation.

🔑 Short-term momentum signals: Support lies near ₹82–₹84, resistance around ₹92–₹95. Entry zone is closer to ₹84–₹86 if support holds. Exit zone should be considered near ₹92–₹95. The stock is in a consolidation phase with cautious bias.

✅ Positive

  • EPS of ₹3.07 provides earnings visibility.
  • Quarterly PAT stable at ₹669 Cr vs ₹675 Cr.
  • ROE at 12.1% indicates moderate profitability.
  • PEG ratio of 1.05 suggests fair valuation relative to growth.
  • FII holdings increased slightly (+0.05%).

⚠️ Limitation

  • High debt-to-equity ratio (4.60) raises leverage risk.
  • ROCE at 8.84% is modest compared to peers.
  • P/E of 28.3 vs industry average of 15.1 indicates overvaluation.
  • Weak trading volume limits conviction in momentum signals.

📉 Company Negative News

  • DII holdings decreased (-0.21%), showing domestic investor caution.
  • Weak 52-week performance (26.0% index level).

📊 Company Positive News

  • Quarterly profit variation (+14.1%) shows resilience.
  • Minor foreign inflows support sentiment.

🏭 Industry

  • Industry P/E at 15.1 highlights sector trading at lower multiples.
  • NBFC sector remains resilient but faces margin and leverage pressures.

📝 Conclusion

BAJAJHFL shows weak technical momentum with price below 200 DMA and modest efficiency ratios. Fundamentals are stable but valuations are stretched and leverage is high. Entry near ₹84–₹86 offers cautious opportunity, with exit near ₹92–₹95. Strict stop-loss discipline is essential given consolidation and overvaluation risks.

Would you like me to extend this into a peer benchmarking overlay comparing BAJAJHFL against Bajaj Finance and Bajaj Finserv to highlight relative strength and valuation within the NBFC space?

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