KEI - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📊 KEI shows strong potential for swing trading. The RSI at 48.4 indicates neutral momentum, while the slightly negative MACD (-0.88) suggests mild short-term weakness. The stock is trading above both DMA 50 (4,094 ₹) and DMA 200 (3,920 ₹), showing technical strength. The optimal entry price would be near 4,150–4,200 ₹, close to DMA support. If already holding, consider exiting around 4,450–4,500 ₹, near the recent high where resistance may emerge.

✅ Positive

• 📈 EPS of 82.7 ₹ supports strong earnings visibility.
• 💹 ROCE of 21.3% and ROE of 15.6% reflect solid efficiency.
• 📊 PAT improved from 196 Cr. to 204 Cr. QoQ, showing growth.
• 🌍 DII holdings increased by 1.08%, showing strong domestic institutional support.
• 📈 52-week index gain of 86.3% highlights strong momentum.
• 📊 Debt-to-equity ratio of 0.04 indicates very low leverage risk.

⚠️ Limitation

• 📉 P/E of 51.8 is significantly higher than industry PE of 20.0, suggesting overvaluation.
• 📊 PEG ratio of 2.28 signals expensive valuation relative to growth.
• 📉 Dividend yield of 0.10% offers minimal shareholder return.
• 📊 Trading volume (1.39 lakh) is below weekly average, showing reduced participation.

🚨 Company Negative News

• 📉 FII holdings decreased by 0.77%, showing reduced foreign investor confidence.
• 📊 High valuation compared to industry raises caution for new investors.

🌟 Company Positive News

• 📈 PAT growth QoQ highlights operational improvement.
• 💹 Strong increase in DII stake reflects domestic investor confidence.
• 📊 Efficiency metrics (ROCE, ROE) remain robust.

🏭 Industry

• 📊 Industry PE at 20.0 suggests sector is moderately valued compared to KEI’s higher valuation.
• 🌍 Cable and electrical sector benefits from infrastructure expansion and rising demand in power projects.

📌 Conclusion

KEI presents a strong swing trade opportunity. Entry near 4,150–4,200 ₹ may provide a favorable setup, while exit around 4,450–4,500 ₹ is advisable if already holding. Strong fundamentals, efficiency, and momentum are positives, but high valuation and weak foreign investor sentiment require disciplined stop-loss management.

Would you like me to also highlight short-term candlestick reversal signals that could confirm the entry zone near 4,150–4,200 ₹?