KEC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.4

📊 KEC International shows moderate potential for swing trading. The stock is currently trading below both its 50 DMA (751 ₹) and 200 DMA (814 ₹), reflecting short-term weakness. RSI at 41.3 suggests it is approaching oversold territory, while MACD remains negative (-18.1), confirming bearish momentum. Fundamentally, the company has shown strong quarterly profit growth (+81.8%) and EPS of 14.1 ₹, but high P/E (50.5 vs industry 18.8) and elevated debt-to-equity (0.90) raise caution.

💡 Optimal Entry Price: Around 680–700 ₹ (near support zone, slightly above 52-week low of 605 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 760–780 ₹ (resistance around 50 DMA) or if RSI crosses 60 with weakening momentum.

✅ Positive

• 📈 Quarterly PAT surged from 36.8 Cr. to 106 Cr. (+81.8%)
• 💰 EPS of 14.1 ₹ supports earnings base
• 📊 ROCE at 14.6% indicates efficient capital use
• 📦 Dividend yield of 0.79% provides modest income

⚠️ Limitation

• 📉 High P/E ratio (50.5) compared to industry average (18.8)
• 📊 Debt-to-equity ratio at 0.90 adds leverage risk
• 📉 Stock trading below both 50 DMA and 200 DMA shows technical weakness
• 📊 Weak trading volume compared to average (3,61,633 vs 16,08,167)

🚨 Company Negative News

• 📉 Decline in institutional investor holdings (FII -0.10%, DII -0.01%)
• 📊 Technical weakness with negative MACD and below DMA levels

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+81.8%)
• 💡 EPS growth supports valuation strength despite high P/E

🏭 Industry

• 📊 Industry P/E at 18.8, KEC trades at a steep premium valuation
• 🏗️ Infrastructure and power transmission demand supports sector outlook

📌 Conclusion

⚖️ KEC International is a cautious candidate for swing trading. Fundamentals show strong profit growth, but technical indicators remain weak and valuation is stretched. A careful entry near 680–700 ₹ could provide upside potential toward 760–780 ₹. Traders should monitor RSI and MACD closely to confirm momentum reversal before committing to positions.

I can also outline short-term resistance and support zones to help you track potential breakout opportunities in this setup.