POWERGRID - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | POWERGRID | Market Cap | 2,63,683 Cr. | Current Price | 283 ₹ | High / Low | 322 ₹ |
| Stock P/E | 16.8 | Book Value | 106 ₹ | Dividend Yield | 3.18 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 265 ₹ | DMA 200 | 279 ₹ |
| Chg in FII Hold | -0.93 % | Chg in DII Hold | 0.86 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 68.2 | MACD | 0.60 | Volume | 5,42,73,736 | Avg Vol 1Wk | 2,84,56,822 |
| Low price | 247 ₹ | High price | 322 ₹ | PEG Ratio | 6.77 | Debt to equity | 1.38 |
| 52w Index | 48.1 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 17.0 |
📊 Analysis: POWERGRID trades at a fair valuation (P/E 16.8 vs industry 17.0) with solid ROE (17.1%) and a decent dividend yield (3.18%). The current price (₹283) is above both 50 DMA (₹265) and 200 DMA (₹279), showing technical strength. RSI at 68.2 indicates the stock is nearing overbought territory, while MACD (0.60) suggests mild bullish momentum. Quarterly PAT improved (₹3,555 Cr → ₹4,160 Cr), reflecting stable earnings growth. However, PEG ratio (6.77) signals expensive growth expectations, and FII holdings declined (-0.93%). Overall, POWERGRID is a moderate swing trade candidate with limited upside due to stretched momentum.
💡 Optimal Entry Price: Around ₹270–₹275 (near 200 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹315–₹320 (recent high resistance). Exit below ₹265 if weakness emerges to protect capital.
✅ Positive
- Fair valuation compared to industry (P/E 16.8 vs 17.0).
- Strong ROE at 17.1% and ROCE at 13.0%.
- Dividend yield of 3.18% adds investor appeal.
- Quarterly PAT growth of 6.83% shows earnings stability.
- Price trading above both 50 DMA and 200 DMA.
⚠️ Limitation
- PEG ratio of 6.77 indicates expensive growth expectations.
- RSI at 68.2 suggests overbought conditions.
- Debt-to-equity ratio at 1.38 is relatively high.
📉 Company Negative News
- Decline in FII holdings (-0.93%).
- High PEG ratio limits valuation comfort.
📈 Company Positive News
- Quarterly PAT improved from ₹3,555 Cr to ₹4,160 Cr.
- DII holdings increased (+0.86%).
- Strong trading volume above weekly average, showing investor interest.
🏭 Industry
- Industry P/E at 17.0 aligns with POWERGRID’s valuation.
- Power transmission sector benefits from infrastructure expansion and energy demand growth.
🔎 Conclusion
POWERGRID is a stable, dividend-paying stock with fair valuation and strong technical positioning. It is a moderate swing trade candidate with entry near ₹270–₹275 and exit near ₹315–₹320. Overbought RSI and high PEG ratio suggest limited upside, so risk management is crucial.