POWERINDIA - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.8
| Stock Code | POWERINDIA | Market Cap | 84,821 Cr. | Current Price | 19,033 ₹ | High / Low | 22,840 ₹ |
| Stock P/E | 118 | Book Value | 1,028 ₹ | Dividend Yield | 0.03 % | ROCE | 19.4 % |
| ROE | 13.8 % | Face Value | 2.00 ₹ | DMA 50 | 18,521 ₹ | DMA 200 | 17,919 ₹ |
| Chg in FII Hold | 1.02 % | Chg in DII Hold | -0.75 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 56.2 | MACD | 91.1 | Volume | 1,92,812 | Avg Vol 1Wk | 1,85,088 |
| Low price | 10,300 ₹ | High price | 22,840 ₹ | PEG Ratio | 4.11 | Debt to equity | 0.02 |
| 52w Index | 69.6 % | Qtr Profit Var | 406 % | EPS | 163 ₹ | Industry PE | 40.7 |
📊 Analysis: POWERINDIA shows strong growth momentum with quarterly PAT up 406% (₹264 Cr vs ₹132 Cr) and EPS at ₹163. ROE (13.8%) and ROCE (19.4%) are moderate, supported by a debt-light balance sheet (0.02). However, valuations are stretched with a P/E of 118 compared to industry average of 40.7, and PEG ratio (4.11) signals expensive growth expectations. Dividend yield (0.03%) is negligible. Current price (₹19,033) is above both 50 DMA (₹18,521) and 200 DMA (₹17,919), reflecting bullish momentum. RSI (56.2) suggests neutral-to-slightly overbought conditions, while MACD (91.1) indicates strong positive sentiment. The ideal entry zone lies between ₹17,500–₹18,000 for long-term investors. If already holding, maintain positions for 3–4 years, leveraging growth potential, but consider partial profit booking near ₹22,500–₹22,800 resistance levels.
✅ Positive
- Strong quarterly PAT growth (+406%) highlights operational strength.
- EPS at ₹163 provides a solid earnings base.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII holdings increased (+1.02%), reflecting foreign investor confidence.
⚠️ Limitation
- High P/E (118) compared to industry average (40.7).
- PEG ratio (4.11) signals overvaluation relative to growth.
- Dividend yield (0.03%) is negligible for income-focused investors.
📉 Company Negative News
- DII holdings decreased (-0.75%), showing cautious domestic sentiment.
- Valuations stretched, limiting immediate upside potential.
📈 Company Positive News
- Quarterly profit growth highlights strong operational momentum.
- MACD (91.1) indicates bullish momentum in near term.
- Volume stability (1.92L vs avg 1.85L) shows consistent investor interest.
🏭 Industry
- Power and energy sector benefits from rising infrastructure and renewable demand.
- Industry PE (40.7) is much lower than POWERINDIA, suggesting peers may offer better valuations.
🔎 Conclusion
POWERINDIA is a growth-driven company with strong earnings momentum and low debt, but valuations are stretched. Ideal entry is around ₹17,500–₹18,000. Existing holders should maintain positions for 3–4 years, leveraging growth, while booking profits near ₹22,500–₹22,800 resistance levels.
Would you like me to extend this with a peer benchmarking overlay (ABB India, Siemens, CG Power) so you can compare POWERINDIA’s valuation and profitability against its closest industrial peers?