ELECON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ELECON | Market Cap | 8,597 Cr. | Current Price | 383 ₹ | High / Low | 717 ₹ |
| Stock P/E | 23.0 | Book Value | 85.8 ₹ | Dividend Yield | 0.52 % | ROCE | 29.1 % |
| ROE | 22.6 % | Face Value | 1.00 ₹ | DMA 50 | 423 ₹ | DMA 200 | 495 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.35 % | PAT Qtr | 61.9 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 39.8 | MACD | -11.9 | Volume | 5,99,472 | Avg Vol 1Wk | 6,43,379 |
| Low price | 348 ₹ | High price | 717 ₹ | PEG Ratio | 0.45 | Debt to equity | 0.12 |
| 52w Index | 9.58 % | Qtr Profit Var | -32.7 % | EPS | 22.5 ₹ | Industry PE | 31.3 |
📊 ELECON has strong fundamentals with high ROCE (29.1%) and ROE (22.6%), supported by a low debt-to-equity ratio (0.12). The P/E of 23.0 is below the industry average (31.3), suggesting undervaluation. However, technical indicators (RSI 39.8, MACD -11.9) show bearish momentum, and recent quarterly profit decline raises caution. This makes it a moderate candidate for swing trading with careful entry near support levels.
💡 Optimal Entry Price: Around 360–370 ₹ (close to support zone near 348 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 420–430 ₹ (DMA 50 resistance) unless momentum improves.
Positive
- Strong ROCE (29.1%) and ROE (22.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.12) shows financial stability.
- PEG ratio of 0.45 suggests growth at reasonable valuation.
- P/E of 23.0 is below industry average, indicating undervaluation.
Limitation
- Current price (383 ₹) is below DMA 50 (423 ₹) and DMA 200 (495 ₹), reflecting technical weakness.
- Quarterly PAT declined (61.9 Cr. vs 78.9 Cr.), showing earnings pressure.
- RSI and MACD indicate bearish momentum.
Company Negative News
- Quarterly profit variation dropped (-32.7%).
- FII holdings decreased (-0.22%), showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.35%), showing domestic institutional support.
- EPS of 22.5 ₹ supports valuation strength.
Industry
- Industry P/E is 31.3, higher than company’s 23.0, suggesting ELECON is undervalued relative to peers.
- Sector outlook remains stable, but company-specific earnings weakness is a concern.
Conclusion
⚠️ ELECON is a moderate swing trade candidate. Strong fundamentals and undervaluation support potential upside, but weak technicals and declining quarterly profits require caution. Entry near 360–370 ₹ offers favorable risk-reward, with exit targets around 420–430 ₹. A strict stop-loss near 345 ₹ is advisable to manage downside risk.