KAYNES - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | KAYNES | Market Cap | 23,806 Cr. | Current Price | 3,552 ₹ | High / Low | 7,705 ₹ |
| Stock P/E | 110 | Book Value | 651 ₹ | Dividend Yield | 0.00 % | ROCE | 11.9 % |
| ROE | 7.97 % | Face Value | 10.0 ₹ | DMA 50 | 4,204 ₹ | DMA 200 | 5,279 ₹ |
| Chg in FII Hold | -1.84 % | Chg in DII Hold | -6.93 % | PAT Qtr | 62.9 Cr. | PAT Prev Qtr | 54.3 Cr. |
| RSI | 41.1 | MACD | -199 | Volume | 21,63,371 | Avg Vol 1Wk | 18,98,621 |
| Low price | 3,295 ₹ | High price | 7,705 ₹ | PEG Ratio | 1.57 | Debt to equity | 0.08 |
| 52w Index | 5.83 % | Qtr Profit Var | 0.53 % | EPS | 32.9 ₹ | Industry PE | 29.7 |
📊 KAYNES shows limited swing trade potential at current levels. The RSI at 41.1 indicates the stock is approaching oversold territory, but MACD at -199 reflects strong bearish momentum. The PEG ratio of 1.57 suggests valuation is expensive relative to growth, while the P/E of 110 is significantly higher than the industry average (29.7). Current price (3,552 ₹) is well below both 50 DMA (4,204 ₹) and 200 DMA (5,279 ₹), confirming medium-term weakness. Fundamentals such as ROCE (11.9%) and ROE (7.97%) are modest, though EPS (32.9 ₹) shows earnings strength.
✅ Optimal Entry Price: 3,400–3,500 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 3,900–4,000 ₹ (near 50 DMA resistance). Trail stop-loss near 3,300 ₹ to protect downside.
Positive
- 📈 EPS of 32.9 ₹ supports earnings strength.
- 📊 PAT growth from 54.3 Cr. to 62.9 Cr. shows incremental improvement.
- 🔒 Low debt-to-equity (0.08) ensures financial stability.
- 📊 Strong trading volume (21.6L vs avg 18.9L) indicates active investor participation.
Limitation
- ⚠️ Extremely high P/E (110) compared to industry average (29.7) suggests stretched valuation.
- 📉 PEG ratio of 1.57 indicates expensive growth prospects.
- 📉 Current price below both 50 DMA and 200 DMA reflects medium-term weakness.
- 📉 ROCE (11.9%) and ROE (7.97%) are modest compared to peers.
Company Negative News
- 📉 Decline in FII holding (-1.84%) signals reduced foreign investor confidence.
- 📉 Decline in DII holding (-6.93%) shows weaker domestic institutional support.
Company Positive News
- 📊 PAT improved quarter-on-quarter, showing earnings growth.
- 💹 EPS performance supports valuation strength despite high P/E.
Industry
- 🏭 Industry P/E at 29.7 is much lower than KAYNES’s 110, suggesting sector valuations are more modest.
- 📊 Sector momentum remains modest with 52-week index gain of 5.83%.
Conclusion
🔎 KAYNES earns a swing trade rating of 3.6. Entry near 3,400–3,500 ₹ provides margin of safety, while exit around 3,900–4,000 ₹ aligns with resistance levels. Strong EPS and low debt support the trade, but high valuation, weak technicals, and declining institutional holdings require cautious position sizing and disciplined stop-loss management.