CGPOWER - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | CGPOWER | Market Cap | 1,51,860 Cr. | Current Price | 964 ₹ | High / Low | 971 ₹ |
| Stock P/E | 113 | Book Value | 52.2 ₹ | Dividend Yield | 0.13 % | ROCE | 29.2 % |
| ROE | 21.9 % | Face Value | 2.00 ₹ | DMA 50 | 858 ₹ | DMA 200 | 751 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.49 % | PAT Qtr | 412 Cr. | PAT Prev Qtr | 337 Cr. |
| RSI | 67.1 | MACD | 29.8 | Volume | 39,33,798 | Avg Vol 1Wk | 34,62,371 |
| Low price | 526 ₹ | High price | 971 ₹ | PEG Ratio | 5.11 | Debt to equity | 0.01 |
| 52w Index | 98.4 % | Qtr Profit Var | 49.4 % | EPS | 8.36 ₹ | Industry PE | 38.8 |
CGPOWER shows strong potential for swing trading. The fundamentals are impressive with ROCE at 29.2% and ROE at 21.9%, supported by very low debt-to-equity (0.01). Quarterly PAT improved significantly (337 Cr. → 412 Cr.), reflecting strong earnings momentum. Valuation is stretched with a P/E of 113 compared to the industry average of 38.8, and PEG ratio of 5.11 suggests expensive growth. Technical indicators are bullish — RSI at 67.1 is close to overbought, and MACD at 29.8 confirms strong upward momentum. The stock is trading near its 52-week high (971 ₹), so caution is advised for new entries.
Optimal Entry Price: 940–950 ₹ (near support above DMA 50)
Exit Strategy: If already holding, consider exiting near 970–980 ₹ resistance or if RSI crosses 70.
✅ Positive
- 📈 Strong ROCE of 29.2% and ROE of 21.9%.
- 💰 Very low debt-to-equity ratio of 0.01.
- 📊 PAT growth from 337 Cr. to 412 Cr. in the latest quarter.
- 📉 Support near DMA 50 at 858 ₹ provides a favorable entry zone.
⚠️ Limitation
- 📌 High P/E ratio of 113 vs industry average of 38.8.
- 📌 PEG ratio of 5.11 suggests expensive valuation relative to growth.
- 📌 RSI at 67.1 is close to overbought territory.
📰 Company Negative News
- 📉 Slight reduction in FII holding (-0.01%).
- 📉 Valuation concerns due to premium trading multiples.
🌟 Company Positive News
- 📈 Increase in DII holding (+0.49%).
- 📈 Strong quarterly PAT improvement.
- 📈 EPS of 8.36 ₹ indicates earnings stability.
🏭 Industry
- ⚡ Power equipment and engineering sector benefits from infrastructure growth and electrification demand.
- 📌 Industry P/E at 38.8, showing CGPOWER trades at a significant premium valuation.
📌 Conclusion
CGPOWER is fundamentally strong with excellent profitability, low debt, and strong earnings momentum, making it attractive for swing trading. Entry near 940–950 ₹ offers favorable risk-reward, while exit near 970–980 ₹ is optimal. Traders should monitor RSI closely as the stock approaches overbought levels.