KNRCON - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.8

📊 KNRCON shows weak potential for swing trading at present. The RSI at 26.2 indicates oversold conditions, which may trigger a short-term rebound. However, the negative MACD (-8.04) and sharp decline in quarterly PAT highlight significant weakness. The current price (146 ₹) is well below both DMA 50 (167 ₹) and DMA 200 (207 ₹), showing strong technical pressure. The optimal entry price would be near 142–146 ₹, close to support levels. If already holding, consider exiting around 160–165 ₹, where resistance from DMA 50 may cap upside.

✅ Positive

• 📈 EPS of 12.0 ₹ supports earnings visibility.
• 💹 ROCE of 27.4% and ROE of 20.5% reflect strong efficiency.
• 📊 P/E of 12.3 is lower than industry PE of 18.8, suggesting undervaluation.
• 💸 Dividend yield of 0.18% provides minor shareholder return.
• 📊 PEG ratio of 0.47 indicates fair valuation relative to growth.
• 🌍 FII holdings increased by 0.46%, showing foreign investor confidence.
• 📈 Debt-to-equity ratio of 0.02 shows very low leverage risk.

⚠️ Limitation

• 📉 Current price significantly below DMA 50 and DMA 200 shows technical weakness.
• 📊 RSI oversold may indicate rebound, but also highlights weak sentiment.
• 📉 Trading volume (5.6 lakh) is below weekly average, showing reduced participation.
• 📊 52-week index gain of only 2.41% highlights limited momentum compared to peers.

🚨 Company Negative News

• 📉 PAT declined sharply from 51.3 Cr. to 27.9 Cr. QoQ.
• 📊 Quarterly profit variation at -91.9% highlights severe earnings pressure.
• 📉 DII holdings decreased by 3.59%, showing reduced domestic institutional confidence.

🌟 Company Positive News

• 📈 Efficiency metrics (ROCE, ROE) remain strong despite profit decline.
• 💹 FII stake increased, reflecting foreign investor support.

🏭 Industry

• 📊 Industry PE at 18.8 suggests sector is moderately valued compared to KNRCON’s lower valuation.
• 🌍 Infrastructure and construction sector benefits from government-led projects and capital expenditure growth.

📌 Conclusion

KNRCON presents a risky swing trade opportunity. Entry near 142–146 ₹ may provide a rebound, while exit around 160–165 ₹ is advisable if already holding. Strong efficiency and low debt are positives, but declining profitability, weak technicals, and reduced domestic support limit upside. Traders should apply strict stop-loss discipline.

Would you like me to also highlight short-term candlestick reversal signals that could confirm the entry zone near 142–146 ₹?