POWERGRID - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📈 Positive

• 💰 Attractive dividend yield of 3.23% provides steady income during holding period.
• 📘 P/E of 16.8 is in line with industry average (17.1), suggesting fair valuation.
• 📈 ROE of 17.1% and ROCE of 13.0% reflect solid capital efficiency for a utility stock.
• 📊 EPS of ₹16.6 and consistent profitability support long-term stability.
• 📈 DII holding increased by 0.84%, indicating growing domestic institutional interest.
• 📈 Volume (2.73 Cr.) significantly above 1-week average (1.44 Cr.), showing strong participation.

⚠️ Limitation

• 📉 RSI at 38.7 indicates weak momentum and potential oversold condition.
• 📉 Price is below both DMA 50 (₹288) and DMA 200 (₹292), confirming short-term technical weakness.
• 📉 FII holding declined by 0.84%, showing reduced foreign investor confidence.
• 📉 PEG ratio of 6.78 suggests overvaluation relative to growth.
• 📉 Debt-to-equity ratio of 1.38 is high, typical for capital-intensive utilities but still a risk factor.
• 📉 PAT declined slightly QoQ (₹3,555 Cr. vs ₹3,653 Cr.), indicating mild earnings pressure.

🚫 Company Negative News

• 📉 Analysts have raised concerns over rising capex and debt levels impacting near-term margins.

✅ Company Positive News

• 🔌 POWERGRID continues to benefit from government-led infrastructure expansion and renewable energy integration.
• 📈 Stable cash flows and regulated returns support long-term investor confidence.

🏦 Industry

• ⚡ Operates in the power transmission sector, which is defensive and benefits from infrastructure growth and electrification.
• 📊 Industry P/E of 17.1 reflects stable valuation and moderate growth expectations.

🧾 Conclusion

• 📉 POWERGRID is fundamentally stable with strong volume and yield appeal, but faces short-term technical weakness and valuation concerns.
• 📍 Optimal entry: ₹270–₹275 (near recent support and below DMA levels).
• 🚪 Exit if held: ₹290–₹295 (near DMA 200 and resistance zone) unless momentum improves.
• ⚠️ Suitable for swing trading with a defensive bias and tight stop-loss strategy.

I can also compare POWERGRID’s swing setup with peers like NTPC or PFC to help you spot relative strength opportunities.