KEC - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | KEC | Market Cap | 15,425 Cr. | Current Price | 579 ₹ | High / Low | 947 ₹ |
| Stock P/E | 40.4 | Book Value | 194 ₹ | Dividend Yield | 0.95 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 578 ₹ | DMA 200 | 687 ₹ |
| Chg in FII Hold | -1.91 % | Chg in DII Hold | 1.39 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 54.6 | MACD | 3.57 | Volume | 22,26,123 | Avg Vol 1Wk | 10,83,803 |
| Low price | 501 ₹ | High price | 947 ₹ | PEG Ratio | -2.61 | Debt to equity | 0.90 |
| 52w Index | 17.6 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 19.0 |
Analysis: KEC International (KEC) shows moderate fundamentals with EPS of ₹12.9 and ROCE of 14.6%. However, ROE is relatively weak at 7.0%. The stock trades at a high P/E of 40.4 compared to the industry average of 19, raising valuation concerns. Quarterly profit declined from ₹106 Cr. to ₹78.7 Cr., reflecting weaker earnings momentum. Technically, the stock is at its 50 DMA (₹578) but below the 200 DMA (₹687), indicating resistance overhead. RSI at 54 and positive MACD suggest mild bullishness, while volume is strong compared to average, showing active participation. Institutional activity is mixed, with FII holdings down (-1.91%) but DII holdings up (+1.39%).
Optimal Entry Price: Around ₹560–570, closer to support near ₹501 for better risk-reward.
Exit Strategy (if already holding): Consider profit booking near ₹680–700 (200 DMA resistance) or maintain a stop-loss below ₹540.
✅ Positive
- Strong ROCE of 14.6%.
- Dividend yield of 0.95% provides income support.
- Stock trading at 50 DMA with positive MACD momentum.
- DII holdings increased (+1.39%), showing domestic confidence.
⚠️ Limitation
- High P/E (40.4) compared to industry average (19).
- Quarterly profit declined from ₹106 Cr. to ₹78.7 Cr.
- ROE relatively weak at 7.0%.
- Debt-to-equity ratio of 0.90, moderate leverage risk.
📰 Company Negative News
- No major negative news reported, but earnings decline is a concern.
🌟 Company Positive News
- Improved domestic institutional investor confidence.
- Healthy dividend yield supporting shareholder returns.
🏭 Industry
- Infrastructure/engineering sector trades at lower P/E (19), making KEC relatively expensive.
- Sector benefits from government infrastructure spending and global project demand.
📌 Conclusion
KEC International is a moderate candidate for swing trading. While technicals show short-term strength, high valuation and declining profits limit upside potential. Entry near ₹560–570 offers better risk-reward, with exits near ₹680–700. Traders should remain cautious of earnings weakness and valuation risks.