POWERGRID - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | POWERGRID | Market Cap | 2,96,829 Cr. | Current Price | 319 ₹ | High / Low | 325 ₹ |
| Stock P/E | 18.9 | Book Value | 106 ₹ | Dividend Yield | 2.82 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 303 ₹ | DMA 200 | 290 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 64.0 | MACD | 6.03 | Volume | 76,57,796 | Avg Vol 1Wk | 95,62,070 |
| Low price | 250 ₹ | High price | 325 ₹ | PEG Ratio | 7.62 | Debt to equity | 1.38 |
| 52w Index | 92.1 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 19.1 |
Analysis: Power Grid Corporation is trading at ₹319, close to its 52-week high of ₹325, showing strong momentum. The price is above both DMA 50 (₹303) and DMA 200 (₹290), confirming an uptrend. RSI at 64 suggests moderate strength but nearing overbought territory. MACD is positive, supporting bullish sentiment. Fundamentals are stable with ROE at 17.1%, ROCE at 13%, and a healthy dividend yield of 2.82%. Valuation is fair with a P/E of 18.9, close to the industry average (19.1). Debt-to-equity at 1.38 is manageable for a utility company.
Optimal Entry Price: Around ₹305–310 (near DMA 50 support).
Exit Strategy: If already holding, consider booking profits near ₹325 (recent high) or if RSI crosses 70.
✅ Positive
- Consistent profit growth (PAT ₹3,555 Cr → ₹4,160 Cr).
- ROE of 17.1% indicates strong shareholder returns.
- Dividend yield of 2.82% adds income stability.
- FII holdings increased by 0.29%, showing foreign investor confidence.
- Stock trading above DMA 50 and DMA 200 confirms bullish trend.
⚠️ Limitation
- PEG ratio of 7.62 suggests limited growth relative to valuation.
- ROCE at 13% is modest compared to peers.
- DII holdings decreased by 0.14%, showing reduced domestic institutional support.
- Volume lower than weekly average, indicating weaker short-term participation.
📉 Company Negative News
- Debt-to-equity ratio at 1.38, though manageable, indicates reliance on borrowings.
- Quarterly profit growth (6.83%) is modest compared to peers in the sector.
📈 Company Positive News
- Strong quarterly PAT growth from ₹3,555 Cr to ₹4,160 Cr.
- Stable dividend payout supports investor confidence.
- Stock near 52-week high, reflecting strong market sentiment.
🏭 Industry
- Industry PE at 19.1, close to Power Grid’s valuation, suggesting fair pricing.
- Utility sector benefits from government infrastructure push and steady demand.
🔎 Conclusion
Power Grid is a stable, dividend-paying utility stock with strong fundamentals and technical momentum. It is a good candidate for swing trading with entry near ₹305–310 and profit booking around ₹325. Caution is advised as RSI approaches overbought levels and growth prospects remain moderate.