CGPOWER - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.9

🔍 Is CGPOWER Good for Swing Trading?

CGPOWER is a classic case of a fundamentally strong stock that's currently technically weak, making it unsuitable for immediate swing entry but worth monitoring for a bounce or reversal.

📈 Positives

🧾 ROCE (37.5%) and ROE (27.6%) are extremely healthy — operationally efficient

💼 Debt-to-equity ratio: 0.01 — virtually debt-free, solid financials

💹 Consistent PAT (₹267 Cr.) and Qtr Profit Var (+10.7%)

📢 Institutional interest: DII up by 2.75%, could support future rallies

⚡ Positioned at 200-DMA (₹659) — a potential technical support level

🛑 Negatives

📉 P/E of 104 vs Industry PE of 57.2 — very expensive valuation

📉 MACD negative (-2.75) and RSI at 41.9 — weak momentum indicators

🔕 Volume below average, indicating lack of active trader interest

💵 PEG Ratio of 9.54 — pricing in steep future growth that's yet to materialize

📉 Slight decline in FII holding — softening sentiment

Unless there's volume recovery, a technical reversal, and visible momentum cues, this isn't an ideal swing candidate right now.

🎯 Optimal Entry Price

Buy Zone: ₹640–₹655 — below 200-DMA for dip-based setup

Entry only if

RSI moves above 50

MACD flattens and begins to cross up

Volume improves to above 35L

Stop-Loss: ₹615 — below recent support to minimize downside risk

🚪 Exit Strategy (If Already Holding)

First Target: ₹690–₹705 — recovery range near 50-DMA

Aggressive Target: ₹740–₹755 — if trend reverses and volume spikes

Trail stop to ₹670 once ₹700 is breached to protect gains

🧠 Final Word

CGPOWER is not swing-ready right now due to its weak technical posture and overheated valuation. But its strong balance sheet and profitability metrics make it a solid candidate for watchlisting, especially if a momentum recovery kicks in. If you're already holding, it’s best to aim for short-term upside while protecting capital with tight trailing stops.

Want me to pull up similar low-debt, high-profit industrial plays showing stronger swing signals? Could make a tidy little shortlist to spark your next move.

Edit in a page