CGPOWER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | CGPOWER | Market Cap | 1,05,510 Cr. | Current Price | 670 ₹ | High / Low | 798 ₹ |
| Stock P/E | 87.5 | Book Value | 48.7 ₹ | Dividend Yield | 0.19 % | ROCE | 35.8 % |
| ROE | 26.0 % | Face Value | 2.00 ₹ | DMA 50 | 633 ₹ | DMA 200 | 671 ₹ |
| Chg in FII Hold | -1.00 % | Chg in DII Hold | 1.26 % | PAT Qtr | 337 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 64.6 | MACD | -2.28 | Volume | 55,61,148 | Avg Vol 1Wk | 84,47,560 |
| Low price | 518 ₹ | High price | 798 ₹ | PEG Ratio | 2.84 | Debt to equity | 0.01 |
| 52w Index | 54.4 % | Qtr Profit Var | 38.1 % | EPS | 7.60 ₹ | Industry PE | 40.7 |
📊 CGPOWER has strong fundamentals with high ROCE and ROE, supported by robust quarterly profit growth. However, valuations are stretched compared to industry averages, and technical indicators show mixed signals. It is a moderately strong swing trade candidate with cautious upside potential.
💡 Optimal Entry Price: 650–660 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 720–740 ₹ (resistance zone) or if RSI crosses 70, signaling overbought conditions.
✅ Positive
- Strong ROCE (35.8%) and ROE (26.0%) indicate excellent capital efficiency.
- Quarterly PAT improved from 307 Cr. to 337 Cr. (+38.1%), showing earnings momentum.
- DII holdings increased (+1.26%), reflecting strong domestic institutional support.
- Debt-to-equity ratio of 0.01 shows virtually debt-free balance sheet.
- Stock trading above 50 DMA (633 ₹) and near 200 DMA (671 ₹), showing technical strength.
⚠️ Limitation
- P/E ratio (87.5) is significantly higher than industry average (40.7), suggesting overvaluation.
- Dividend yield of 0.19% is very low, limiting investor returns.
- PEG ratio of 2.84 highlights expensive growth prospects.
- MACD at -2.28 indicates weakening momentum despite bullish fundamentals.
- Trading volume lower than weekly average, showing reduced short-term interest.
📉 Company Negative News
- FII holdings decreased (-1.00%), reflecting reduced foreign investor confidence.
- MACD negative, suggesting short-term weakness in momentum.
📈 Company Positive News
- Quarterly PAT growth of 38.1% highlights strong earnings performance.
- DII holdings increased (+1.26%), strengthening domestic support.
- Stock trading near 52-week high (798 ₹), showing strong long-term momentum.
🏭 Industry
- Power and engineering sector benefits from infrastructure growth and industrial demand.
- Industry PE at 40.7 is much lower than CGPOWER’s valuation, showing premium pricing.
🔎 Conclusion
CGPOWER is a moderately strong swing trade candidate with excellent fundamentals and earnings momentum but stretched valuations and mixed technical signals. Entry near 650–660 ₹ is favorable, with exit around 720–740 ₹. Traders should monitor RSI, MACD, and institutional flows closely before committing.