KEI - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.1

⚡ Swing Trade Analysis: KEI Industries Ltd.

KEI presents a strong swing trade setup backed by bullish technicals, solid fundamentals, and institutional accumulation. While valuation is on the higher side, momentum and earnings support a short-term trading opportunity.

✅ Strengths

Technical Momentum: Price ₹4,149 is well above both 50-DMA (₹3,924) and 200-DMA (₹3,751), confirming a strong uptrend.

MACD (72.0): Strongly positive — indicates bullish momentum.

RSI (62.6): Healthy — not yet overbought, with room for upside.

Profitability: ROCE (21.3%) and ROE (15.6%) are excellent — efficient capital deployment.

Earnings Growth: PAT ₹196 Cr vs ₹227 Cr — slight dip, but Qtr Profit Var of 30.3% shows strong YoY growth.

Institutional Sentiment: FII (+0.76%) and DII (+2.12%) holdings increased — strong confidence.

Debt-to-Equity: Very low at 0.04 — robust financial health.

⚠️ Weaknesses

Valuation: P/E of 53.5 is significantly above industry average (29.1), and PEG ratio of 2.35 suggests overvaluation.

Dividend Yield: Low at 0.10% — not attractive for yield-focused investors.

Volume: Slightly above weekly average — decent but not explosive.

🎯 Optimal Entry Price

Buy Zone: ₹4,000–₹4,050

A minor pullback near 50-DMA would offer a better risk-reward entry.

🚪 Exit Strategy (If Holding)

Target Exit: ₹4,400–₹4,500

Near resistance zone; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹3,850

Below this level, trend support weakens.

⚖️ Verdict

KEI is a strong swing trade candidate, ideal for momentum-driven traders. Entry near support and disciplined exit near resistance can yield favorable short-term returns.

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