POWERGRID - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | POWERGRID | Market Cap | 2,68,508 Cr. | Current Price | 289 ₹ | High / Low | 325 ₹ |
| Stock P/E | 16.9 | Book Value | 107 ₹ | Dividend Yield | 3.12 % | ROCE | 10.2 % |
| ROE | 16.6 % | Face Value | 10.0 ₹ | DMA 50 | 295 ₹ | DMA 200 | 291 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4,553 Cr. | PAT Prev Qtr | 4,160 Cr. |
| RSI | 44.8 | MACD | -4.27 | Volume | 89,47,271 | Avg Vol 1Wk | 79,10,662 |
| Low price | 250 ₹ | High price | 325 ₹ | PEG Ratio | -20.8 | Debt to equity | 1.48 |
| 52w Index | 51.6 % | Qtr Profit Var | 5.00 % | EPS | 17.1 ₹ | Industry PE | 33.3 |
📊 POWERGRID presents stable fundamentals with ROE (16.6%) and a healthy dividend yield (3.12%). Quarterly PAT growth (+5%) is steady, but ROCE (10.2%) is modest. Technicals show weakness with RSI at 44.8 and MACD negative (-4.27), indicating consolidation or mild bearishness. The stock trades at a fair valuation (P/E 16.9 vs industry 33.3), suggesting undervaluation. However, debt-to-equity at 1.48 remains a structural concern.
💡 Optimal Entry Price: Around 280–285 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider booking profits near 320–325 ₹ (recent resistance) or trail stop-loss at 270 ₹ to protect downside.
🌟 Positive
- 📈 Reasonable P/E (16.9) compared to industry average (33.3).
- 💰 Attractive dividend yield (3.12%).
- 📊 Consistent PAT growth (4,553 Cr vs 4,160 Cr).
- 📉 FII holdings increased (+0.29%), showing institutional confidence.
⚠️ Limitation
- 📌 ROCE at 10.2% is modest.
- 📌 Debt-to-equity ratio (1.48) indicates leverage risk.
- 📌 RSI (44.8) and negative MACD (-4.27) show weak momentum.
- 📌 DII holdings decreased (-0.14%), showing mixed sentiment.
📰 Company Negative News
- No major negative news reported, but leverage and weak technicals remain concerns.
📰 Company Positive News
- Steady profit growth and strong dividend payouts.
- Continued role in India’s power transmission infrastructure expansion.
🏭 Industry
- Industry P/E at 33.3, highlighting POWERGRID’s undervaluation.
- Power sector benefits from government infrastructure push and rising demand.
✅ Conclusion
POWERGRID is fundamentally stable and undervalued relative to peers, making it a moderate candidate for swing trading. Entry near 280–285 ₹ offers a favorable setup, while profit booking near 320–325 ₹ is prudent. Weak technical momentum and leverage remain key risks, so disciplined stop-loss management is essential.
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