POWERGRID - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | POWERGRID | Market Cap | 2,76,549 Cr. | Current Price | 297 ₹ | High / Low | 322 ₹ |
| Stock P/E | 17.6 | Book Value | 106 ₹ | Dividend Yield | 3.03 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 289 ₹ | DMA 200 | 284 ₹ |
| Chg in FII Hold | -0.93 % | Chg in DII Hold | 0.86 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 52.3 | MACD | 3.37 | Volume | 87,04,225 | Avg Vol 1Wk | 1,61,30,034 |
| Low price | 250 ₹ | High price | 322 ₹ | PEG Ratio | 7.10 | Debt to equity | 1.38 |
| 52w Index | 64.9 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 17.8 |
📊 Power Grid Corporation shows solid fundamentals and stable technical indicators, making it a good candidate for swing trading. The RSI at 52.3 and positive MACD (3.37) indicate neutral-to-bullish momentum. The stock is trading above both its 50 DMA (289 ₹) and 200 DMA (284 ₹), signaling strength. With a P/E of 17.6, it is fairly valued compared to the industry average (17.8).
💡 Optimal Entry Price: Around 290–300 ₹ (near DMA support)
💡 Exit Strategy (if already holding): Consider exiting near 320–322 ₹ (recent high and resistance zone).
🌟 Positive
- Strong ROE (17.1%) supports shareholder returns.
- Dividend yield of 3.03% provides steady income.
- Quarterly PAT growth (4,160 Cr. vs 3,555 Cr.) shows consistent profitability.
- EPS of 16.9 ₹ reflects stable earnings power.
- Trading above both 50 DMA and 200 DMA indicates technical strength.
⚠️ Limitation
- Debt-to-equity ratio of 1.38, though manageable, adds leverage risk.
- PEG ratio of 7.10 suggests limited growth relative to valuation.
- FII holdings declined (-0.93%), showing reduced foreign investor interest.
📉 Company Negative News
- High PEG ratio indicates slower growth prospects.
- Decline in foreign institutional investor holdings.
📈 Company Positive News
- Quarterly profit growth of 6.83% shows operational strength.
- Strong dividend yield supports investor confidence.
- Stable technical indicators with positive MACD and RSI above 50.
🏭 Industry
- Industry P/E at 17.8, while Power Grid trades in line at 17.6.
- Power transmission sector benefits from infrastructure expansion in India.
- Government-backed entity provides stability and long-term demand visibility.
✅ Conclusion
Power Grid is a fundamentally strong and technically stable stock, suitable for swing trading. Entry near 290–300 ₹ is favorable, with an exit target around 320–322 ₹. The steady dividend yield and government backing make it attractive, though growth prospects appear moderate. Traders can capitalize on short-term momentum while long-term investors benefit from consistent returns.