CESC - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.1
| Stock Code | CESC | Market Cap | 20,403 Cr. | Current Price | 154 ₹ | High / Low | 185 ₹ |
| Stock P/E | 24.1 | Book Value | 77.2 ₹ | Dividend Yield | 3.90 % | ROCE | 9.95 % |
| ROE | 7.97 % | Face Value | 1.00 ₹ | DMA 50 | 157 ₹ | DMA 200 | 162 ₹ |
| Chg in FII Hold | 0.79 % | Chg in DII Hold | -0.04 % | PAT Qtr | 176 Cr. | PAT Prev Qtr | 242 Cr. |
| RSI | 47.7 | MACD | 0.35 | Volume | 13,94,793 | Avg Vol 1Wk | 29,83,540 |
| Low price | 137 ₹ | High price | 185 ₹ | PEG Ratio | -77.7 | Debt to equity | 1.12 |
| 52w Index | 35.5 % | Qtr Profit Var | 2.33 % | EPS | 6.39 ₹ | Industry PE | 24.3 |
Analysis: CESC Ltd shows moderate fundamentals with ROCE at 9.95% and ROE at 7.97%, supported by a decent dividend yield of 3.90%. At ₹154, the stock is trading slightly below its 50 DMA (₹157) and 200 DMA (₹162), reflecting mild bearish sentiment. RSI at 47.7 suggests neutral momentum, while MACD at 0.35 indicates weak but positive trend. The P/E of 24.1 is in line with the industry average (24.3), suggesting fair valuation. EPS of ₹6.39 is modest, and debt-to-equity ratio of 1.12 highlights high leverage risk. Quarterly PAT declined from ₹242 Cr. to ₹176 Cr., raising caution. Swing trade potential exists but upside is limited due to weak profitability and leverage concerns.
Optimal Entry Price: Around ₹150–₹155, close to support levels.
Exit Strategy (if already holding): Consider exiting near ₹165–₹170, where resistance aligns with the 200 DMA. A stop-loss near ₹145 is advisable to manage downside risk.
✅ Positive
- Dividend yield of 3.90% provides strong investor returns.
- EPS of ₹6.39 shows steady earnings.
- FII holdings increased (+0.79%), showing foreign investor confidence.
- 52-week index performance (+35.5%) highlights resilience.
⚠️ Limitation
- High debt-to-equity ratio (1.12) adds leverage risk.
- Stock trading below both 50 & 200 DMA.
- ROCE (9.95%) and ROE (7.97%) are modest compared to peers.
- Volume lower than average, reducing liquidity for swing trades.
📰 Company Negative News
- Quarterly PAT declined from ₹242 Cr. to ₹176 Cr.
- DII holdings decreased (-0.04%), showing reduced domestic support.
🌟 Company Positive News
- FII holdings increased (+0.79%), showing foreign investor confidence.
- Dividend yield of 3.90% adds strong shareholder value.
- 52-week index performance (+35.5%) shows resilience despite profit decline.
🏭 Industry
- Power and utilities sector benefits from steady demand and regulated pricing.
- Industry P/E at 24.3 indicates fair valuations, in line with CESC’s pricing.
📌 Conclusion
CESC Ltd offers fair valuation and strong dividend yield, but faces high leverage and declining profits. Entry near ₹150–₹155 may be considered for a short-term rebound, with exit around ₹165–₹170. Swing trade potential exists, but caution is advised due to weak profitability and modest efficiency metrics.