JSWENERGY - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | JSWENERGY | Market Cap | 82,248 Cr. | Current Price | 469 ₹ | High / Low | 579 ₹ |
| Stock P/E | 91.5 | Book Value | 130 ₹ | Dividend Yield | 0.43 % | ROCE | 5.82 % |
| ROE | 6.24 % | Face Value | 10.0 ₹ | DMA 50 | 483 ₹ | DMA 200 | 512 ₹ |
| Chg in FII Hold | -2.62 % | Chg in DII Hold | 2.83 % | PAT Qtr | 82.7 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 48.0 | MACD | -9.12 | Volume | 21,15,616 | Avg Vol 1Wk | 27,24,706 |
| Low price | 419 ₹ | High price | 579 ₹ | PEG Ratio | 3.34 | Debt to equity | 0.61 |
| 52w Index | 31.1 % | Qtr Profit Var | -61.9 % | EPS | 5.04 ₹ | Industry PE | 26.2 |
📊 JSW Energy (JSWENERGY) shows weak fundamentals with low ROCE (5.82%) and ROE (6.24%), alongside very high valuations (P/E 91.5 vs. industry 26.2). The stock is trading below both 50 DMA (483 ₹) and 200 DMA (512 ₹), with RSI at 48.0 indicating neutral momentum and MACD at -9.12 showing bearish pressure. Quarterly profits have declined sharply, raising concerns. While DII holdings have increased, FII holdings have dropped significantly. Overall, it is a risky candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 455 ₹ – 465 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 490 ₹ – 500 ₹ (resistance at 50 DMA) or place a stop-loss below 450 ₹.
✅ Positive
- DII holdings increased (+2.83%), showing domestic institutional support.
- Dividend yield of 0.43% provides minimal but steady returns.
- EPS of 5.04 ₹ offers some earnings visibility.
⚠️ Limitation
- High P/E ratio (91.5) compared to industry average (26.2) indicates severe overvaluation.
- Low ROCE (5.82%) and ROE (6.24%) reflect poor capital efficiency.
- MACD at -9.12 signals bearish momentum.
- PEG ratio of 3.34 suggests valuation pressure relative to growth.
📉 Company Negative News
- Quarterly PAT dropped from 190 Cr. to 82.7 Cr., a sharp decline (-61.9%).
- FII holdings decreased (-2.62%), showing reduced foreign investor confidence.
- Stock trading significantly below 52-week high (579 ₹), reflecting weakness.
📈 Company Positive News
- DII buying interest supports confidence in the company.
- Stock trading near support levels, offering potential for short-term rebound.
🏭 Industry
- Industry PE at 26.2 vs. JSWENERGY PE at 91.5 suggests extreme overvaluation compared to peers.
- Power sector benefits from renewable energy demand, but company-specific fundamentals remain weak.
🔎 Conclusion
JSW Energy is fundamentally weak with stretched valuations and declining profits, though domestic institutional support provides some cushion. Swing traders may enter near 455 ₹ – 465 ₹ with a target around 490 ₹ – 500 ₹. Stop-loss below 450 ₹ is recommended. The stock offers limited swing trade potential with a rating of 3.2.