ELECON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ELECON | Market Cap | 10,208 Cr. | Current Price | 455 ₹ | High / Low | 717 ₹ |
| Stock P/E | 27.4 | Book Value | 85.8 ₹ | Dividend Yield | 0.44 % | ROCE | 29.1 % |
| ROE | 22.6 % | Face Value | 1.00 ₹ | DMA 50 | 452 ₹ | DMA 200 | 523 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.35 % | PAT Qtr | 61.9 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 58.8 | MACD | -11.3 | Volume | 5,91,223 | Avg Vol 1Wk | 6,90,078 |
| Low price | 348 ₹ | High price | 717 ₹ | PEG Ratio | 0.54 | Debt to equity | 0.12 |
| 52w Index | 29.0 % | Qtr Profit Var | -32.7 % | EPS | 22.5 ₹ | Industry PE | 40.7 |
📊 ELECON shows moderate potential for swing trading. The fundamentals are strong with high ROCE (29.1%) and ROE (22.6%), low debt-to-equity (0.12), and a fair P/E (27.4) compared to the industry average (40.7). The PEG ratio of 0.54 suggests undervaluation relative to growth. Technically, the stock is trading just above its 50 DMA (452 ₹) but below the 200 DMA (523 ₹), indicating mixed sentiment. RSI at 58.8 shows neutral-to-positive momentum, though MACD (-11.3) signals short-term weakness. Quarterly profit decline is a concern.
💡 Optimal Entry Price: Around 440–455 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 500–520 ₹ (close to 200 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (29.1%) and ROE (22.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.12) ensures financial stability.
- PEG ratio of 0.54 suggests undervaluation relative to growth prospects.
- DII holdings increased (+0.35%), showing domestic institutional support.
⚠️ Limitation
- Stock trading below 200 DMA (523 ₹), showing medium-term weakness.
- MACD negative (-11.3), signaling short-term bearishness.
- Volume lower than weekly average, indicating reduced trading activity.
📉 Company Negative News
- Quarterly PAT declined from 78.9 Cr. to 61.9 Cr. (-32.7%).
- FII holdings decreased (-0.22%), showing reduced foreign investor confidence.
📈 Company Positive News
- EPS of 22.5 ₹ highlights consistent profitability.
- Dividend yield of 0.44% provides shareholder returns.
- Strong fundamentals compared to industry peers.
🏭 Industry
- Industry PE at 40.7, higher than company’s PE (27.4), suggesting ELECON is undervalued relative to peers.
- Sector outlook remains positive, supporting medium-term growth potential.
🔎 Conclusion
ELECON is fundamentally strong but faces short-term technical weakness. It offers a moderate swing trade opportunity with entry around 440–455 ₹ and exit near 500–520 ₹. Traders should remain cautious due to declining quarterly profits and weak momentum indicators.