KEC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | KEC | Market Cap | 16,366 Cr. | Current Price | 616 ₹ | High / Low | 947 ₹ |
| Stock P/E | 42.8 | Book Value | 194 ₹ | Dividend Yield | 0.89 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 699 ₹ | DMA 200 | 781 ₹ |
| Chg in FII Hold | -4.17 % | Chg in DII Hold | 2.93 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 35.0 | MACD | -23.5 | Volume | 14,34,185 | Avg Vol 1Wk | 9,54,862 |
| Low price | 604 ₹ | High price | 947 ₹ | PEG Ratio | -2.76 | Debt to equity | 0.90 |
| 52w Index | 3.46 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 17.1 |
📊 KEC shows moderate potential for swing trading. The RSI at 35.0 indicates the stock is approaching oversold territory, while MACD at -23.5 reflects bearish momentum. The PEG ratio (-2.76) is distorted, limiting valuation clarity. Current price (616 ₹) is well below both 50 DMA (699 ₹) and 200 DMA (781 ₹), confirming medium-term weakness but offering entry near support levels. Fundamentals are mixed, with ROCE (14.6%) and ROE (7.0%) being modest, though EPS (12.9 ₹) provides some earnings strength.
✅ Optimal Entry Price: 605–615 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 690–710 ₹ (near 50 DMA resistance). Trail stop-loss near 590 ₹ to protect downside.
Positive
- 📈 EPS of 12.9 ₹ supports earnings strength.
- 💰 Dividend yield of 0.89% adds investor appeal.
- 📊 Quarterly profit variation (+8%) shows incremental improvement.
- 📊 Strong trading volume (14.3L vs avg 9.5L) indicates active investor participation.
Limitation
- ⚠️ High P/E (42.8) compared to industry average (17.1) suggests stretched valuation.
- 📉 PEG ratio (-2.76) is negative, limiting valuation reliability.
- 📉 Current price below both 50 DMA and 200 DMA reflects medium-term weakness.
- 📉 ROCE (14.6%) and ROE (7.0%) are modest compared to peers.
- 📉 Debt-to-equity ratio of 0.90 is relatively high, adding leverage risk.
Company Negative News
- 📉 Decline in FII holding (-4.17%) signals reduced foreign investor confidence.
- ⚠️ PAT dropped from 106 Cr. to 78.7 Cr., showing earnings pressure.
Company Positive News
- 📈 Increase in DII holding (+2.93%) reflects strong domestic institutional support.
- 💹 Quarterly profit growth (+8%) supports near-term optimism.
Industry
- 🏭 Industry P/E at 17.1 is much lower than KEC’s 42.8, suggesting sector valuations are more modest.
- 📊 Sector momentum remains modest with 52-week index gain of 3.46%.
Conclusion
🔎 KEC earns a swing trade rating of 3.7. Entry near 605–615 ₹ provides margin of safety, while exit around 690–710 ₹ aligns with resistance levels. Strong volume and domestic institutional support back the trade, but high valuation, weak technicals, and declining foreign investor confidence require cautious position sizing and disciplined stop-loss management.