KEC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | KEC | Market Cap | 14,897 Cr. | Current Price | 559 ₹ | High / Low | 947 ₹ |
| Stock P/E | 39.0 | Book Value | 194 ₹ | Dividend Yield | 0.98 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 608 ₹ | DMA 200 | 727 ₹ |
| Chg in FII Hold | -4.17 % | Chg in DII Hold | 2.93 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 44.4 | MACD | -18.9 | Volume | 4,88,305 | Avg Vol 1Wk | 9,84,849 |
| Low price | 518 ₹ | High price | 947 ₹ | PEG Ratio | -2.52 | Debt to equity | 0.90 |
| 52w Index | 9.63 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 15.5 |
📊 KEC shows moderate potential for swing trading. The RSI at 44.4 indicates neutral momentum, while MACD (-18.9) reflects bearish sentiment. The current price (559 ₹) is below both the 50 DMA (608 ₹) and 200 DMA (727 ₹), confirming weakness. Fundamentals such as ROCE (14.6%) and ROE (7.0%) are modest, while valuation appears stretched with a P/E (39.0) compared to industry P/E (15.5). The high debt-to-equity ratio (0.90) adds financial risk, though recent profit growth provides some support.
✅ Optimal Entry Price: Around 540–560 ₹ (near current support zone and above 52-week low of 518 ₹).
📈 Exit Strategy (if already holding): Consider exiting near 600–610 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
Positive
- Quarterly PAT growth from 106 Cr. to 78.7 Cr. shows resilience despite volatility.
- Dividend yield of 0.98% provides modest income support.
- Book value of 194 ₹ offers asset backing relative to price.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects bearish sentiment.
- High P/E (39.0) compared to industry P/E (15.5) suggests overvaluation.
- ROE (7.0%) and ROCE (14.6%) are relatively weak compared to peers.
- Debt-to-equity ratio of 0.90 adds financial risk.
Company Negative News
- FII holding decreased significantly (-4.17%), showing reduced foreign investor confidence.
- Quarterly PAT declined from 106 Cr. to 78.7 Cr., reflecting earnings pressure.
Company Positive News
- DII holding increased (+2.93%), reflecting strong domestic institutional support.
- Quarterly profit variation of 8% highlights modest earnings improvement year-on-year.
Industry
- Industry P/E (15.5) is much lower than company P/E (39.0), suggesting KEC trades at a premium.
- Sector outlook remains steady, supported by infrastructure and power transmission demand.
Conclusion
⚖️ KEC is a cautious swing trade candidate. While fundamentals provide some support, technical indicators show weakness and valuations are stretched. Entry near 540–560 ₹ may offer a short-term rebound, but strict stop-losses around 520 ₹ are essential. Exit near 600–610 ₹ is advisable unless momentum improves significantly.