ELECON - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.3

📊 ELECON shows moderate potential for swing trading but faces weak technical momentum. Current price (₹483) is below both 50 DMA (₹518) and 200 DMA (₹556), reflecting bearish sentiment. RSI at 32.6 indicates oversold conditions, while MACD (-15.0) confirms negative momentum. Fundamentals are strong with ROCE (29.1%) and ROE (22.6%), supported by low debt (0.12). Valuation is attractive with a P/E of 26.9 compared to industry average of 43.9. Optimal entry would be near ₹470–₹480 if support holds. If already holding, exit near ₹510–₹520 resistance unless momentum strengthens further.

✅ Positive

• 📈 Strong ROCE (29.1%) and ROE (22.6%) show efficient capital use
• 📉 Low debt-to-equity (0.12) ensures financial stability
• 📊 EPS at ₹23.8 supports valuation strength
• 📈 Valuation attractive with P/E (26.9) below industry average (43.9)
• 📊 DII holding increased (+0.33%), showing domestic investor confidence

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI oversold but MACD negative
• 📉 Quarterly PAT declined from ₹107 Cr. to ₹78.9 Cr.
• ⚠️ FII holding decreased (-1.30%)

🚨 Company Negative News

• 📉 Profit decline in recent quarter
• ⚠️ Weak technical indicators despite strong fundamentals

🌟 Company Positive News

• 📈 Strong fundamentals with high ROCE and ROE
• 📊 Attractive valuation compared to industry peers
• 📈 Domestic institutional investors increasing stake

🏭 Industry

• 📊 Industry P/E at 43.9, higher than company’s 26.9, suggesting undervaluation
• 📈 Capital goods sector has long-term growth potential with infrastructure expansion

📌 Conclusion

⚖️ ELECON is a fair swing trade candidate with strong fundamentals and undervaluation, but weak technical momentum. Entry is favorable near ₹470–₹480 on dips. For existing holders, exit near ₹510–₹520 resistance is advisable unless RSI and MACD show stronger recovery.

I can also outline ELECON’s medium-term support and resistance zones to help you track swing opportunities beyond the immediate levels.