CGPOWER - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | CGPOWER | Market Cap | 1,08,264 Cr. | Current Price | 687 ₹ | High / Low | 798 ₹ |
| Stock P/E | 89.8 | Book Value | 48.7 ₹ | Dividend Yield | 0.19 % | ROCE | 35.8 % |
| ROE | 26.0 % | Face Value | 2.00 ₹ | DMA 50 | 684 ₹ | DMA 200 | 680 ₹ |
| Chg in FII Hold | -1.00 % | Chg in DII Hold | 1.26 % | PAT Qtr | 337 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 47.0 | MACD | 8.99 | Volume | 37,57,628 | Avg Vol 1Wk | 37,09,992 |
| Low price | 518 ₹ | High price | 798 ₹ | PEG Ratio | 2.91 | Debt to equity | 0.01 |
| 52w Index | 60.4 % | Qtr Profit Var | 38.1 % | EPS | 7.60 ₹ | Industry PE | 31.3 |
Analysis: CG Power and Industrial Solutions Ltd (CGPOWER) shows strong fundamentals with ROCE at 35.8% and ROE at 26.0%, supported by very low debt-to-equity (0.01). At ₹687, the stock is trading around its 50 DMA (₹684) and 200 DMA (₹680), indicating stability and potential support. RSI at 47.0 suggests neutral momentum, while MACD at 8.99 confirms mild bullish sentiment. The P/E of 89.8 is significantly higher than the industry average (31.3), pointing to overvaluation. EPS of ₹7.60 is modest, and PEG ratio of 2.91 reflects expensive growth-adjusted valuation. Quarterly PAT improved from ₹307 Cr. to ₹337 Cr. (+38.1%), showing earnings strength. Swing trade potential exists with cautious entry near support levels.
Optimal Entry Price: Around ₹675–₹685, close to support zones.
Exit Strategy (if already holding): Consider exiting near ₹740–₹760, where resistance aligns with recent highs. A stop-loss near ₹660 is advisable to manage downside risk.
✅ Positive
- Strong ROCE (35.8%) and ROE (26.0%).
- Very low debt-to-equity ratio (0.01).
- Quarterly PAT growth from ₹307 Cr. to ₹337 Cr. (+38.1%).
- DII holdings increased (+1.26%), showing domestic institutional support.
- Strong 52-week index performance (+60.4%).
⚠️ Limitation
- High P/E of 89.8 vs industry 31.3.
- EPS of ₹7.60 is modest relative to valuation.
- PEG ratio of 2.91 indicates expensive growth-adjusted valuation.
📰 Company Negative News
- FII holdings decreased (-1.00%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Quarterly PAT improved significantly (+38.1%).
- DII holdings increased (+1.26%), showing domestic support.
- Strong 52-week rally (+60.4%).
🏭 Industry
- Electrical equipment and industrial solutions sector benefits from infrastructure growth and manufacturing demand.
- Industry P/E at 31.3 indicates moderate valuations compared to CG Power’s premium pricing.
📌 Conclusion
CG Power is fundamentally strong with high efficiency and low debt, but faces valuation risks due to its premium P/E. Entry near ₹675–₹685 may be considered for a rebound, with exit around ₹740–₹760. Swing trade potential exists, but caution is advised due to overvaluation and reduced FII confidence.