⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

KNRCON - Swing Trade Analysis with AI Signals

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Rating: 2.8

Last Updated Time : 17 Jan 26, 12:44 am

Swing Trade Rating: 2.8

Stock Code KNRCON Market Cap 4,019 Cr. Current Price 143 ₹ High / Low 328 ₹
Stock P/E 11.9 Book Value 143 ₹ Dividend Yield 0.17 % ROCE 27.4 %
ROE 20.5 % Face Value 2.00 ₹ DMA 50 160 ₹ DMA 200 198 ₹
Chg in FII Hold -0.14 % Chg in DII Hold -1.49 % PAT Qtr 27.9 Cr. PAT Prev Qtr 51.3 Cr.
RSI 37.0 MACD -4.47 Volume 11,34,907 Avg Vol 1Wk 11,01,386
Low price 140 ₹ High price 328 ₹ PEG Ratio 0.46 Debt to equity 0.02
52w Index 1.72 % Qtr Profit Var -91.9 % EPS 12.0 ₹ Industry PE 17.6

📊 KNRCON currently shows weak potential for swing trading. The stock is trading below both its 50 DMA (₹160) and 200 DMA (₹198), reflecting bearish sentiment. RSI at 37.0 indicates oversold conditions, while MACD at -4.47 confirms negative momentum. The optimal entry price would be around ₹140–₹145, near support levels. If already holding, consider exiting around ₹160–₹170, unless momentum improves significantly.

✅ Positive

  • 📈 ROCE of 27.4% and ROE of 20.5% highlight strong operational efficiency.
  • 📊 EPS of 12.0 ₹ indicates profitability.
  • 📉 Debt-to-equity ratio of 0.02 shows negligible leverage risk.
  • 📊 PEG ratio of 0.46 suggests fair valuation relative to growth prospects.
  • 📈 Trading volume (11,34,907) is slightly above 1-week average (11,01,386), showing active participation.

⚠️ Limitation

  • 📉 Current price (₹143) is below both 50 DMA and 200 DMA, showing weak technicals.
  • 📊 Dividend yield of 0.17% is negligible, offering limited passive income.
  • 📉 FII holding decreased by 0.14% and DII holding by 1.49%, showing reduced institutional confidence.
  • 📊 RSI and MACD indicate weak momentum, limiting near-term upside.

🚨 Company Negative News

  • 📉 PAT declined sharply from ₹51.3 Cr. to ₹27.9 Cr., showing earnings pressure.
  • 📉 Quarterly profit variation of -91.9% highlights severe weakness in profitability.
  • 📉 Stock has dropped significantly from its 52-week high of ₹328, reflecting poor sentiment.

🌟 Company Positive News

  • 📈 Strong ROCE and ROE indicate efficient operations despite earnings decline.
  • 📊 EPS remains positive, showing profitability even in challenging conditions.

🏭 Industry

  • 📊 Industry PE at 17.6 is higher than KNRCON’s 11.9, suggesting undervaluation compared to peers.
  • 📈 Infrastructure and construction sector outlook remains positive with government focus on road and highway projects.

📌 Conclusion

KNRCON is a weak candidate for swing trading due to bearish technicals and declining profitability, despite strong efficiency ratios and undervaluation. Entry is better near ₹140–₹145, with exit around ₹160–₹170 if holding. Traders should remain cautious and wait for momentum confirmation before committing to larger positions.

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