JSWENERGY - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | JSWENERGY | Market Cap | 98,874 Cr. | Current Price | 562 ₹ | High / Low | 588 ₹ |
| Stock P/E | 110 | Book Value | 130 ₹ | Dividend Yield | 0.36 % | ROCE | 5.82 % |
| ROE | 6.24 % | Face Value | 10.0 ₹ | DMA 50 | 517 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | 0.24 % | Chg in DII Hold | -0.10 % | PAT Qtr | 82.7 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 62.2 | MACD | 19.1 | Volume | 36,98,902 | Avg Vol 1Wk | 38,24,040 |
| Low price | 428 ₹ | High price | 588 ₹ | PEG Ratio | 4.02 | Debt to equity | 0.61 |
| 52w Index | 83.8 % | Qtr Profit Var | -61.9 % | EPS | 5.04 ₹ | Industry PE | 31.0 |
📊 JSW Energy (JSWENERGY) shows cautious potential for swing trading. The RSI at 62.2 indicates strong momentum but is approaching overbought territory. The MACD (19.1) is positive, reflecting bullish signals. The current price (₹562) is above both the 50 DMA (₹517) and 200 DMA (₹510), showing technical strength. However, fundamentals are weak with ROCE (5.82%) and ROE (6.24%), while the very high P/E (110) compared to industry PE (31.0) and PEG ratio (4.02) highlight stretched valuations. PAT declined sharply (₹190 Cr. → ₹82.7 Cr.), raising concerns.
💡 Optimal Entry Price: Around ₹540–₹555, near short-term support.
📈 Exit Strategy (if already holding): Consider booking profits near ₹580–₹590, close to the recent high.
✅ Positive
- Price trading above both 50 DMA and 200 DMA shows technical strength.
- MACD positive (19.1) indicates bullish momentum.
- DII holdings stable (-0.10%) and FII holdings increased (+0.24%).
- Strong trading volumes above average reflect investor interest.
⚠️ Limitation
- Extremely high P/E ratio (110) compared to industry PE (31.0).
- Weak ROCE (5.82%) and ROE (6.24%) show poor efficiency.
- PEG ratio of 4.02 signals expensive growth expectations.
- Debt-to-equity ratio (0.61) adds moderate financial risk.
📉 Company Negative News
- PAT declined sharply from ₹190 Cr. to ₹82.7 Cr.
- Quarterly profit variation shows -61.9% decline.
📈 Company Positive News
- Price recovery from 52-week low (₹428) to current levels shows resilience.
- EPS of ₹5.04 reflects profitability despite weak margins.
🏭 Industry
- Industry PE at 31.0 vs. JSWENERGY’s PE of 110 highlights significant overvaluation.
- Energy sector benefits from renewable expansion but faces margin pressures.
🔎 Conclusion
JSWENERGY is technically strong but fundamentally weak with stretched valuations and declining profits. Swing traders may cautiously enter near ₹540–₹555, targeting exits around ₹580–₹590. Risk management is essential given overvaluation and weak efficiency metrics.