CESC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 CESC is a technically strong swing trade candidate with stable fundamentals and attractive yield. Entry near ₹178 is optimal. If already held, consider exiting around ₹195–₹200.

📈 Positive

• 📊 ROCE of 9.95% and ROE of 7.97% reflect steady capital efficiency for a utility firm.
• 📈 MACD at 4.00 and RSI at 61.9 suggest bullish momentum.
• 📈 Trading above DMA 50 (₹171) and DMA 200 (₹166) confirms short-term strength.
• 💰 Dividend Yield of 3.30% enhances total return potential.
• 📈 Quarterly PAT improved from ₹211 Cr. to ₹242 Cr. (↑14.7%), showing earnings growth.
• 📈 FII and DII holdings increased, signaling rising institutional confidence.

⚠️ Limitation

• 💸 Stock P/E of 28.7 is slightly above industry average of 24.7.
• 📉 PEG ratio of -92.5 indicates valuation concerns relative to growth.
• 📉 Debt-to-equity ratio of 1.12 is high, typical for capital-intensive sectors but worth monitoring.

📉 Company Negative News

• 📉 Analysts flagged concerns over regulatory risks and rising input costs affecting margins.

📈 Company Positive News

• 📈 CESC posted strong Q2 earnings with consistent profitability and stable cash flows.
• 📈 Management expects demand growth from urban expansion and infrastructure development.

⚡ Industry

• ⚡ Power and utility sector benefits from rising energy demand and government push for infrastructure.
• 📊 Industry P/E of 24.7 reflects moderate valuation across peers.

✅ Conclusion

• 📈 CESC is a good swing trade candidate with bullish technicals and stable fundamentals.
• 📉 Optimal entry price: ₹178–₹180 (near DMA 50 and support zone).
• 📈 Exit target: ₹195–₹200 (approaching resistance and psychological level).
• 📌 Watch for RSI nearing 70 and MACD flattening for signs of trend exhaustion.

I can compare CESC’s technical setup with other power sector stocks to refine your swing strategy.