CGCL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.1

📈 CGCL is a strong swing trade candidate with improving earnings, solid technical support, and attractive growth valuation. Entry near ₹192 is optimal. If already held, consider exiting around ₹210–₹220.

📈 Positive

• 📊 ROCE of 11.4% and ROE of 11.0% indicate efficient capital deployment for an NBFC.
• 📈 MACD at 3.89 and RSI at 50.9 suggest neutral-to-bullish momentum.
• 📈 Trading above DMA 50 (₹192) and DMA 200 (₹184) confirms technical strength.
• 📈 Quarterly PAT rose from ₹150 Cr. to ₹212 Cr. (↑41%), showing strong earnings momentum.
• 💸 PEG ratio of 0.82 indicates attractive growth relative to valuation.
• 📈 FII holding increased by 0.11%, signaling growing foreign interest.

⚠️ Limitation

• 💸 Stock P/E of 30.2 vs industry average of 22.6 suggests a premium valuation.
• 📉 DII holding declined by 0.24%, showing slight domestic caution.
• 📉 Debt-to-equity ratio of 1.99 is high, though typical for lending businesses.
• 📉 Volume significantly below average (12.3L vs 54.8L), indicating reduced participation.

📉 Company Negative News

• 📉 Analysts flagged concerns over rising borrowing costs and competitive pressure in the NBFC space.

📈 Company Positive News

• 📈 CGCL posted robust Q2 results with 145% YoY profit growth, driven by strong disbursements and asset quality.
• 📈 Management expects continued growth from MSME lending and rural finance segments.

🏦 Industry

• 🏦 The NBFC sector is benefiting from credit demand recovery, digital lending, and rural consumption growth.
• 📊 Industry P/E of 22.6 reflects moderate optimism across financial services peers.

✅ Conclusion

• 📈 CGCL is a good swing trade candidate with strong earnings momentum and technical support.
• 📉 Optimal entry price: ₹190–₹193 (near DMA 50 and support zone).
• 📈 Exit target: ₹210–₹220 (approaching resistance and psychological level).
• 📌 Watch for RSI crossing 55 and MACD widening for confirmation before entry.

I can compare CGCL’s setup with other NBFCs to help you spot stronger momentum or better value plays.