CGPOWER - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 CG Power is a strong swing trade candidate with excellent fundamentals and technical support. Entry near ₹735 is optimal. If already held, consider exiting around ₹780–₹800.

📈 Positive

• 📊 ROCE of 35.8% and ROE of 26.0% reflect outstanding capital efficiency.
• 📉 Debt-to-equity ratio of 0.01 indicates a virtually debt-free balance sheet.
• 📈 Quarterly PAT improved from ₹286 Cr. to ₹307 Cr. (↑7.3%), showing consistent earnings growth.
• 📈 FII holding increased by 0.35%, signaling rising foreign investor confidence.
• 📈 Trading above DMA 50 (₹735) and DMA 200 (₹694) confirms bullish trend continuation.

⚠️ Limitation

• 💸 Stock P/E of 106 vs industry average of 49.8 suggests steep valuation.
• 📉 MACD at -1.54 indicates short-term momentum weakness.
• 📉 Volume below average (24.1L vs 41.7L), suggesting reduced participation.
• 📉 DII holding declined by 0.07%, showing slight domestic institutional caution.
• 📉 PEG ratio of 3.43 signals expensive growth expectations.

📉 Company Negative News

• 📉 Analysts flagged valuation concerns and potential margin pressure from rising input costs.

📈 Company Positive News

• 📈 CG Power reported strong Q2 results with 38% YoY profit growth and robust order book expansion.
• 📈 Management highlighted growth in industrial automation and power systems as key drivers.

⚙️ Industry

• ⚙️ The electrical equipment and industrial automation sector is benefiting from infrastructure push and manufacturing revival.
• 📊 Industry P/E of 49.8 reflects premium valuation across top performers.

✅ Conclusion

• 📈 CG Power is a strong swing trade candidate with excellent fundamentals and technical support.
• 📉 Optimal entry price: ₹730–₹740 (near DMA 50 and support zone).
• 📈 Exit target: ₹780–₹800 (approaching resistance and psychological level).
• 📌 Watch for MACD crossover and RSI nearing 60 for stronger confirmation before entry.

I can compare CG Power’s setup with other industrial automation stocks to refine your swing strategy.