POWERINDIA - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.1

📊 Technical & Momentum Analysis

Current Price (₹20,550) is well above both the 50-DMA (₹18,633) and 200-DMA (₹15,141) — confirms a strong uptrend.

RSI (58.8): Bullish but not overbought — room for further upside.

MACD (386): Strongly positive — momentum is accelerating.

Volume: Slightly above average — healthy participation from traders.

📈 Fundamental Snapshot

ROCE (19.4%) & ROE (13.8%): Solid, though not exceptional — indicates decent capital efficiency.

EPS (₹116) vs Stock P/E (181): Extremely overvalued relative to Industry PE (55.2) — valuation is a concern.

PEG Ratio (6.30): Very high — suggests limited upside relative to growth.

Quarterly PAT Drop: ₹184 Cr → ₹132 Cr — recent earnings dip could weigh on sentiment.

FII Holding Increase (+2.23%): Strong institutional confidence.

DII Holding Decline (-2.07%): Domestic investors showing caution.

Debt to Equity (0.02): Virtually debt-free — excellent financial stability.

Dividend Yield (0.03%): Minimal — not attractive for income-seeking investors.

⚖️ Swing Trade Viability

Strengths

Strong technical momentum and trend structure.

High institutional interest (FII).

Near 52-week high — bullish sentiment intact.

Low debt and solid fundamentals.

Risks

Extremely high valuation (P/E & PEG).

Recent earnings decline.

DII pullback — potential short-term caution.

🎯 Optimal Entry Price

Entry Zone: ₹19,000–₹19,400 — near 50-DMA support. Ideal if RSI stays below 65 and MACD remains positive.

🚪 Exit Strategy

If Holding: Consider exiting near ₹21,200–₹21,350 — close to recent high and psychological resistance.

Stop Loss: ₹18,500 — breach below 50-DMA would weaken the swing setup.

POWERINDIA is riding strong momentum, but its valuation is stretched. It’s a good candidate for a short-term swing if you’re disciplined with entry and exit. If you’re looking to rotate into power sector stocks with better valuation and similar momentum, I can help you scout a few alternatives.

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