⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

CGCL - Swing Trade Analysis with AI Signals

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Rating: 4.1

Last Updated Time : 05 May 26, 03:11 pm

📊 Swing Trade Rating: 4.1

Stock Code CGCL Market Cap 18,710 Cr. Current Price 195 ₹ High / Low 214 ₹
Stock P/E 22.7 Book Value 70.0 ₹ Dividend Yield 0.10 % ROCE 11.7 %
ROE 15.4 % Face Value 1.00 ₹ DMA 50 178 ₹ DMA 200 180 ₹
Chg in FII Hold 1.12 % Chg in DII Hold -0.02 % PAT Qtr 243 Cr. PAT Prev Qtr 221 Cr.
RSI 67.4 MACD 4.49 Volume 73,69,344 Avg Vol 1Wk 37,29,887
Low price 151 ₹ High price 214 ₹ PEG Ratio 0.28 Debt to equity 2.81
52w Index 69.8 % Qtr Profit Var 53.2 % EPS 8.57 ₹ Industry PE 19.2

Analysis: CGCL shows strong quarterly profit growth (53.2%) with PAT rising from 221 Cr. to 243 Cr. EPS at 8.57 ₹ and PEG ratio of 0.28 suggest undervaluation relative to growth. Technicals are supportive: RSI at 67.4 indicates strength, MACD positive, and price trading above both 50 DMA (178 ₹) and 200 DMA (180 ₹). However, high debt-to-equity (2.81) and modest ROCE (11.7%) are cautionary factors.

Optimal Entry Price: Around 185–190 ₹ (near 200 DMA support).

Exit Strategy: If already holding, consider profit booking near 210–214 ₹ resistance, or exit if price falls below 178 ₹.

✅ Positive

  • Quarterly profit growth of 53.2%.
  • EPS of 8.57 ₹ supports valuation strength.
  • PEG ratio of 0.28 indicates undervaluation.
  • Price trading above both 50 DMA and 200 DMA.

⚠️ Limitation

  • High debt-to-equity ratio (2.81).
  • ROCE at 11.7% is moderate compared to peers.
  • Dividend yield is very low at 0.10%.

📉 Company Negative News

  • DII holdings decreased slightly (-0.02%).

📈 Company Positive News

  • FII holdings increased (+1.12%), showing foreign investor confidence.
  • Quarterly PAT improved significantly.

🏭 Industry

  • Industry PE is 19.2, lower than CGCL’s 22.7, suggesting premium valuation.
  • Financial services sector remains supported by credit demand and economic growth.

📝 Conclusion

CGCL is a strong swing trade candidate with robust earnings growth and favorable technicals. Entry near 185–190 ₹ offers a good risk-reward setup, with profit booking near 210–214 ₹ advisable. While fundamentals are solid, high leverage and modest ROCE warrant cautious optimism.

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