JPPOWER - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.5

📉 JP Power shows neutral technicals and low valuation, but weak momentum and earnings volatility limit upside.

🎯 Optimal Entry Price: ₹17.2–₹17.5

🚪 Exit Target (if already holding): ₹18.8–₹19.2

🔍 Positive

• 📉 P/E of 16.6 is well below industry average (31.0), indicating undervaluation.
• 📈 Debt-to-equity ratio of 0.28 reflects low leverage and financial stability.
• 📈 Book value of ₹18.6 is slightly above current price, offering value support.
• 📊 MACD at -0.11 suggests bearish momentum may be flattening.
• 📈 PEG ratio of 0.17 implies attractive valuation relative to growth.

⚠️ Limitation

• 📉 RSI at 45.2 is neutral, lacking strong directional bias.
• 📉 Volume below weekly average (2.19 Cr vs 2.99 Cr), showing reduced trader interest.
• 📉 Dividend yield of 0% offers no passive income.
• 📉 ROE of 6.83% is modest, limiting capital efficiency.
• 📉 Price below 50 DMA (₹18.3), indicating short-term weakness.

📉 Company Negative News

• 📉 PAT declined from ₹278 Cr to ₹182 Cr, showing earnings volatility.
• 📉 DII holding dropped by 0.08%, reflecting cautious domestic sentiment.

📈 Company Positive News

• ⚡ JP Power continues to benefit from stable demand in thermal and hydro segments.
• 📈 FII holding increased by 0.04%, indicating marginal foreign interest.
• 📈 Operational efficiency and low debt profile support long-term stability.

⚡ Industry

• ⚡ Power sector benefits from rising energy demand and infrastructure growth.
• 📉 Regulatory challenges and tariff pressures remain key risks.

✅ Conclusion

• 📉 JP Power is moderately suitable for swing trading due to low valuation and stable fundamentals.
• 🎯 Entry near ₹17.2–₹17.5 with exit around ₹18.8–₹19.2 is recommended for short-term traders.
• 📊 Long-term investors should monitor earnings consistency and sector reforms for better visibility.

I can also compare JP Power with Tata Power or NHPC to identify stronger swing setups in the energy sector.