NLCINDIA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Optimal Entry Price: ₹255–₹260 (near 50 DMA and RSI support)

📈 Exit Strategy (if holding): ₹285–₹290 (near resistance and 52-week high)

🔷 Positive

• 📊 Quarterly PAT growth of 43.0%: From ₹368 Cr. to ₹485 Cr., showing strong earnings momentum.
• 📈 Trading above DMA 50 and 200: Indicates medium-term technical strength.
• 📈 FII holding increased by 0.30%: Reflects growing foreign investor confidence.
• 💰 Dividend yield of 1.14%: Offers modest income potential.
• 📉 Debt-to-equity ratio of 0.47: Indicates manageable leverage for a capital-intensive business.

⚠️ Limitation

• 📉 MACD at -1.09: Suggests bearish momentum in the short term.
• 📉 RSI at 48.4: Neutral zone, not yet signaling a strong reversal.
• 📉 PEG ratio of 61.3: Implies valuation concerns relative to growth expectations.
• 📉 DII holding dropped by 0.39%: Indicates slight domestic institutional caution.
• 📉 ROE (5.61%) and ROCE (9.02%): Reflect modest capital efficiency.

📉 Company Negative News

• 📉 Analysts flagged concerns over execution delays and regulatory bottlenecks in thermal and renewable projects.
• 📉 Volume is below 1-week average, suggesting reduced short-term trading interest.

📈 Company Positive News

• 📈 NLC India reported a 43% QoQ jump in PAT, driven by improved operational efficiency and higher power generation.
• 📊 Management remains optimistic about capacity expansion in renewable energy and lignite mining.

⚡ Industry

• 🔋 Operates in the power generation and mining sector, benefiting from rising energy demand and infrastructure push.
• 📉 Industry P/E of 31.0 suggests NLC trades at a discount, offering value for swing traders.

🧾 Conclusion

• ⚠️ NLC India is a moderate swing trade candidate with strong earnings momentum and technical support, though valuation and momentum indicators warrant caution.
• 📌 Entry near ₹255–₹260 offers a favorable setup if RSI stabilizes and MACD turns positive.
• 🚪 If already holding, consider exiting near ₹285–₹290, aligning with resistance and 52-week high.

I can also compare NLC India with NTPC or SJVN to help you refine your swing trade strategy.