JPPOWER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | JPPOWER | Market Cap | 11,041 Cr. | Current Price | 16.1 ₹ | High / Low | 27.7 ₹ |
| Stock P/E | 17.8 | Book Value | 18.6 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.83 % | Face Value | 10.0 ₹ | DMA 50 | 16.8 ₹ | DMA 200 | 17.6 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | -0.16 % | PAT Qtr | 4.89 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 50.1 | MACD | -0.55 | Volume | 6,19,47,020 | Avg Vol 1Wk | 4,78,26,254 |
| Low price | 12.4 ₹ | High price | 27.7 ₹ | PEG Ratio | 0.19 | Debt to equity | 0.28 |
| 52w Index | 24.5 % | Qtr Profit Var | -96.1 % | EPS | 0.91 ₹ | Industry PE | 26.2 |
📊 JP Power (JPPOWER) shows weak fundamentals with low ROE (6.83%) and ROCE (10.2%), alongside a sharp decline in quarterly profits. The stock is trading below both 50 DMA (16.8 ₹) and 200 DMA (17.6 ₹), with RSI at 50.1 indicating neutral momentum and MACD at -0.55 showing bearish pressure. While valuations appear reasonable (P/E 17.8 vs. industry 26.2), earnings volatility and weak institutional support make it a poor candidate for swing trading in the near term.
💡 Optimal Entry Price: Around 15.5 ₹ – 16.0 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 17.0 ₹ – 17.5 ₹ (resistance at DMA levels) or place a stop-loss below 15.0 ₹.
✅ Positive
- Reasonable P/E ratio (17.8) compared to industry average (26.2).
- PEG ratio of 0.19 suggests potential undervaluation relative to growth.
- Strong trading volume (6.19 crore vs. 4.78 crore average) indicates active investor interest.
- Debt-to-equity ratio of 0.28 shows manageable leverage.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates short-term weakness.
- Low ROE (6.83%) and ROCE (10.2%) reflect poor capital efficiency.
- MACD at -0.55 signals bearish momentum.
- No dividend yield, limiting investor returns outside capital gains.
📉 Company Negative News
- Quarterly PAT dropped sharply from 182 Cr. to 4.89 Cr. (-96.1%).
- DII holdings decreased (-0.16%), showing reduced domestic institutional confidence.
- Stock trading significantly below 52-week high (27.7 ₹), reflecting weakness.
📈 Company Positive News
- FII holdings increased slightly (+0.17%), showing marginal foreign investor interest.
- Stock trading near support levels may attract speculative buying.
🏭 Industry
- Industry PE at 26.2 vs. JPPOWER PE at 17.8 suggests undervaluation compared to peers.
- Power sector benefits from long-term demand, but company-specific fundamentals remain weak.
🔎 Conclusion
JP Power is fundamentally weak with declining profits and poor efficiency, though valuations appear reasonable. Swing traders may enter near 15.5 ₹ – 16.0 ₹ with a target around 17.0 ₹ – 17.5 ₹. Stop-loss below 15.0 ₹ is recommended. The stock offers limited swing trade potential with a rating of 2.8.