KEI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | KEI | Market Cap | 42,091 Cr. | Current Price | 4,400 ₹ | High / Low | 4,588 ₹ |
| Stock P/E | 48.9 | Book Value | 647 ₹ | Dividend Yield | 0.10 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,170 ₹ | DMA 200 | 4,007 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 60.0 | MACD | -56.8 | Volume | 10,03,601 | Avg Vol 1Wk | 4,28,114 |
| Low price | 2,424 ₹ | High price | 4,588 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.04 |
| 52w Index | 91.3 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 18.2 |
📊 KEI shows strong fundamentals with decent swing trade potential. The RSI at 60 indicates mild overbought conditions, while MACD at -56.8 reflects short-term bearish momentum. The PEG ratio of 2.15 suggests valuation is stretched relative to growth, but strong ROCE (21.3%) and ROE (15.6%) support efficiency. Current price (4,400 ₹) is above both 50 DMA (4,170 ₹) and 200 DMA (4,007 ₹), showing bullish strength. High trading volume (10L vs avg 4.2L) confirms strong market participation.
✅ Optimal Entry Price: 4,250–4,300 ₹ (near 50 DMA support, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 4,550–4,600 ₹ (near recent high). Trail stop-loss near 4,200 ₹ to protect downside.
Positive
- 📈 Strong ROCE (21.3%) and ROE (15.6%) highlight efficient capital use.
- 💹 EPS of 90 ₹ supports earnings strength.
- 📊 PAT growth from 204 Cr. to 235 Cr. shows improving profitability.
- 🔒 Very low debt-to-equity (0.04) ensures financial stability.
- 📊 52-week index gain of 91.3% reflects strong sectoral momentum.
- 📊 High trading volume indicates strong investor interest.
Limitation
- ⚠️ High P/E (48.9) compared to industry average (18.2) suggests stretched valuation.
- 📉 PEG ratio of 2.15 indicates expensive growth prospects.
- 📉 Dividend yield of 0.10% offers limited income appeal.
- 📉 RSI at 60 suggests the stock is nearing overbought territory.
Company Negative News
- 📉 Decline in FII holding (-0.33%) signals reduced foreign investor confidence.
Company Positive News
- 📈 Increase in DII holding (+0.56%) reflects domestic institutional support.
- 💹 Quarterly profit variation (+42.5%) shows strong earnings momentum.
Industry
- 🏭 Industry P/E at 18.2 is much lower than KEI’s 48.9, showing sector valuations are more modest.
- 📊 Sector momentum remains strong with 52-week index gain of 91.3%.
Conclusion
🔎 KEI earns a swing trade rating of 4.1. Entry near 4,250–4,300 ₹ provides margin of safety, while exit around 4,550–4,600 ₹ aligns with resistance levels. Strong fundamentals, sector momentum, and volume support the trade, but high valuation and stretched PEG ratio require cautious position sizing and disciplined stop-loss management.