Best stocks for swing trading this week according to our research is Aarti Industries and Bajaj Finserv. As we already know to gain good profits quickly Swing trading is an exciting chance for traders or investors. If traders choose the right stocks wisely, they can make significant profits quickly.
The main reasons why we picked these stocks are mentioned below :
Aarti Industries has recently posted good quarterly results with a Revenue of – 1732 Cr. and a Net profit of 124 Cr.
Bajaj FInserv has recently posted the highest-ever results with a Net Profit Growth of 21% year-on-year basis to Rs 4045 crore.
Aarti Industries can go up to 35% and Bajaj Finserv can show an upside movement of 30% approx from the current price in the upcoming days as per our tried and tested Swing Trading Strategies.
Must read:- Best stocks for Swing Trading this week – 2
Successful Swing Trading Techniques that will make you rich in 2024
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
1)Aarti Industries:-
Aarti Industries Ltd, formed in 1984, manufactures and deals in specialty chemicals and pharmaceuticals.
Key Points –
1)Business Overview
The company manufactures speciality compounds based on benzene. Nitro Chloro Benzenes (NCBs), Di-Chloro Benzenes (DCBs), Phenylenediamines (PDAs), Nitro Toluene Value Chain, Equivalent Sulphuric Acid (ESA), and downstream are all important value chains.
The company has 21+ manufacturing units, 100+ products, 700+ domestic clients, and 400+ export customers in 60+ countries, with a strong presence in the United States, Europe, and Japan.
2)Product Profile:
Special Chemicals Benzene, toluene, nitric acid, chlorine, methanol, aniline, sulfur, etc.
Pharmaceuticals: API, Intermediates, Xanthine Derivatives, CDMO
User Industries: Polymers and additives, agrochemicals and intermediates, dyes, pigments, paints, and printing inks, pharma intermediates, fuel additives, rubber chemicals, resins, etc.
3)Revenue Breakup:
In FY22, the company generated approximately 89% of its revenue from product sales and 11% from other operating revenues.
4)Segmental Revenue:
In FY22, the company earned around 84% of its sales from Specialty Chemicals and 16% from Pharmaceuticals.
5)Geographical Revenue:
In FY22, the company earned around 44% of its income from exports, with North America accounting for 11%, Europe for 11%, China for 5%, Japan for 3%, and the rest of the world for 11%.
6)Partnership:
On November 19th, 2022, the business signed a formal term sheet with Deepak Fertilisers (DFPCL) for a 20-year Nitric Acid offtake and supply agreement worth approximately ~Rs. 8,000 crore. DFPCL is providing Nitric Acid to the company at formula-driven international prices from April 1, 2023.
7Future Projects:
The company is investing ~Rs. 2,500-3,000 crore in capital expenditures to add new chemicals and 40+ value-added products. Additionally, they are developing a 100+ acre site in Jhagadia, with completion planned by FY24.
Fundamentals of Aarti Industries: –
( For a better understanding of Aarti Industries fundamentals, you can visit the screener. in )
Market Cap – ₹ 24,971 Cr.
Stock P/E – 57.6
Current Price – ₹ 689
High / Low – ₹ 710 / 438
Book Value – ₹ 139
Debt to Equity – 0.64
Return on Equity – 10 Years – 20%
Return on Capital Employed – 10 years – 17.2 %
Compounded Profit Growth – 10 years – 15%
Stock Price CAGR – 10 years – 43% which is very good.
Institutions Shareholding Holding – 26% which is good.
Technical Analysis:-
As you can see from the chart below, The Stock made a Cup with a handle pattern and gave a breakout, which is a positive sign.
( For a better understanding of the Aarti industries chart, you can visit tradingview.com )
The company is posting good profits as per the scenario. The chemical companies are under pressure these days because of the increased Repo rates by the RBI (Reserve Bank of India) and increased Crude oil prices. But in the upcoming days as RBI will reduce the Repo rate and Crude price will go down, the chemical companies will again post higher net profits, and hence the stock will move upwards. Aarti Industries is a leading manufacturer in its segment as we discussed in the company overview.
Aarti Industries can show an upmove of 35% at the target of 925 in the upcoming days. These levels are as per our tried and tested CWH (Cup with handle) Strategy. Hence it makes us the best stock for swing trading this week.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
2. Bajaj Finserv
Bajaj Finserv Ltd. serves as the holding company for the Bajaj Group’s different financial services operations. It supports millions of consumers by offering financing for asset acquisition, asset protection through general insurance, family and income protection in the form of life and health insurance, and retirement and savings options.
Key Points –
1)Subsidiaries
The company provides general and life insurance, as well as financing solutions, to its customers through its subsidiaries, Bajaj Allianz General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, and Bajaj FinanceLimited.
2)Network
General Insurance: The company’s general insurance business has over 238 bank partners, 47,600+ agents, 36 NBFCs, 5 SFBs, 1 Payments Bank, 138 cooperative banks, 9 RRBs, and over 9000 networks of automobile dealers across India, 34,800+ active CSC centres, 17+ partnerships with insurance companies, aggregators, wallets such as Phone Pe, payments bank, and so on.
Life Insurance: With over 509 locations across India, the company has a pan-India distribution network.
3)Healthcare
During FY20, the Company established a fully-owned subsidiary called Bajaj Finserv Health Ltd. It is a health-tech startup that aims to improve healthcare in India. It introduced ‘Aarogya Care’, the industry’s first product of its kind, which provided a wide range of healthcare packages.
4)Key Digital Initiatives
The organization launched many digital initiatives to improve client happiness and convenience. DigiSwasth, WhatsApp + BOING 2.0, Data Lake, and Smart Assist are just a few of these initiatives.
Fundamentals Of Bajaj Finserv Ltd:-
( For a better understanding of Bajaj Finserv fundamentals, you can visit the screener. in )
Market Cap – ₹ 2,57,384 Cr.
Stock P/E – 33.0
Current Price – ₹ 1,613
High / Low – ₹ 1,742 / 1,215
Book Value – ₹ 319
Debt to Equity – 4.94
( We don’t consider the debt-to-equity ratio in the case of NBFC companies and banks )
Return on Equity – 10 Years – 14%
Return on Capital Employed – 10 years – 12.7 %
Compounded Profit Growth – 10 years – 15%
Compounded Sales Growth – 10 years – 26%
Promoters Holding – 60.89% which is good.
Institutions Shareholding Holding – 16% which is OK.
As you can see the company’s foundation looks very good. After careful analysis, we firmly believe this is the best stock for swing trading this week.
Technical Analysis:-
According to our technical analysis, this stock has made a Cup With a handle pattern and gave a breakout, but it’s still available at almost the same price. So it’s a great opportunity for us to make an entry in this stock.
( For a better understanding of Bajaj finseerv chart you can visit tradingview.com )
As per our tried and tested Cup with Handle Strategy, It can show an upside move of 30% from the current price in the upcoming days. It can reach up to the target of 2100 in the near future.
It is the largest company in the NBFC Segment. NBFC companies are growing day by day and this segment has a very bright future in INDIA as the per capita income is increasing regularly. As people’s income increases they will take more loans and this company will grow in the future. Technically it’s making a clean cup with a handle pattern and the pattern gives us the target. That is what makes it the best stock for swing trading this week. It’s the best time to grab this opportunity and make some good money.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
CONCLUSION –
As you can see by learning and understanding swing trading strategies you can find numerous opportunities in the market to make profitable trades. To sum it up as you must’ve read both Arti Industries and Bajaj Finserv have strong fundamentals and technicals, we also in detail explained the pros and positive things about the company. That is why we believe both are the best stocks for swing trading this week.
