KEI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | KEI | Market Cap | 40,268 Cr. | Current Price | 4,213 ₹ | High / Low | 5,303 ₹ |
| Stock P/E | 46.8 | Book Value | 647 ₹ | Dividend Yield | 0.11 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,465 ₹ | DMA 200 | 4,167 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 38.9 | MACD | -79.4 | Volume | 5,07,800 | Avg Vol 1Wk | 4,18,054 |
| Low price | 2,424 ₹ | High price | 5,303 ₹ | PEG Ratio | 2.06 | Debt to equity | 0.04 |
| 52w Index | 62.1 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 19.1 |
📊 KEI shows moderate potential for swing trading. The RSI at 38.9 indicates the stock is nearing oversold territory, while MACD (-79.4) reflects strong bearish momentum. The current price (4,213 ₹) is below the 50 DMA (4,465 ₹) but slightly above the 200 DMA (4,167 ₹), suggesting mixed sentiment. Fundamentals such as ROCE (21.3%), ROE (15.6%), and low debt-to-equity (0.04) are strong, though valuation concerns remain with a high P/E (46.8) compared to industry P/E (19.1).
✅ Optimal Entry Price: Around 4,100–4,200 ₹ (near 200 DMA support).
📈 Exit Strategy (if already holding): Consider exiting near 4,450–4,500 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
Positive
- Strong ROCE (21.3%) and ROE (15.6%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.04) provides financial stability.
- Quarterly PAT growth from 204 Cr. to 235 Cr. shows earnings improvement.
- EPS of 90 ₹ is strong relative to current price.
Limitation
- Stock trading below 50 DMA reflects short-term bearish sentiment.
- High P/E (46.8) compared to industry P/E (19.1) suggests overvaluation.
- Dividend yield of 0.11% is very low, offering minimal income support.
- PEG ratio of 2.06 indicates stretched growth-adjusted valuation.
Company Negative News
- FII holding decreased (-0.33%), showing reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.56%), reflecting domestic institutional support.
- Quarterly profit variation of 42.5% highlights strong earnings momentum.
Industry
- Industry P/E (19.1) is much lower than company P/E (46.8), suggesting KEI trades at a premium.
- Sector outlook remains positive, supported by infrastructure and power demand.
Conclusion
⚖️ KEI is a fair candidate for swing trading with strong fundamentals but stretched valuations. Entry near 4,100–4,200 ₹ offers potential upside, but traders should remain cautious due to bearish momentum. A short-term rebound toward 4,450–4,500 ₹ is possible, with strict stop-losses around 4,050 ₹ recommended.