CGPOWER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.5

📊 CG Power shows moderate potential for swing trading. The stock is trading below both its 50 DMA (699 ₹) and 200 DMA (693 ₹), with RSI at 36.3 indicating oversold conditions. MACD is negative (-13.9), suggesting short-term bearishness. Strong ROCE (35.8%) and ROE (26.0%) highlight excellent fundamentals, but high P/E of 95 compared to industry PE of 43.9 limits valuation comfort. Optimal entry would be near 660–670 ₹. If already holding, consider exiting near 720–740 ₹ unless momentum strengthens.

✅ Positive

• 📈 Large market cap of 1,05,767 Cr. ensures stability and liquidity.
• 💹 Strong ROCE (35.8%) and ROE (26.0%).
• 📊 Quarterly PAT rose to 307 Cr. from 286 Cr. (+38.0% variation).
• 📉 Very low debt-to-equity ratio (0.01), showing financial strength.
• 📊 EPS of 7.22 ₹ supports earnings base.
• 📈 FII holdings increased (+0.35%), reflecting foreign investor confidence.

⚠️ Limitation

• 📉 High P/E of 95 compared to industry PE of 43.9.
• 📉 PEG ratio of 3.08, suggesting overvaluation relative to growth.
• 📉 RSI at 36.3 and MACD negative (-13.9) indicate weak momentum.
• 📉 DII holdings decreased (-0.07%).
• 📉 Current price well below 52-week high (798 ₹), showing lack of momentum.

🚨 Company Negative News

No major fresh negative news reported, but high valuation, weak technicals, and reduced DII interest remain concerns.

🌟 Company Positive News

Strong quarterly profit growth and rising FII support highlight improving sentiment despite technical weakness.

🏭 Industry

The power equipment and engineering industry trades at an average PE of 43.9. CG Power’s valuation is significantly higher, reflecting growth optimism but also overvaluation risk.

📌 Conclusion

CG Power is a fair swing trade candidate with strong fundamentals but weak technicals. Best entry near 660–670 ₹ (close to support levels). If already holding, exit near 720–740 ₹ unless momentum breaks resistance. Risk-reward is moderate, with caution advised due to high valuation and bearish indicators.

Would you like me to extend this into a peer comparison with Siemens and ABB India to highlight relative swing trade opportunities in the power equipment sector?