POWERINDIA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.4
| Stock Code | POWERINDIA | Market Cap | 84,821 Cr. | Current Price | 19,033 ₹ | High / Low | 22,840 ₹ |
| Stock P/E | 118 | Book Value | 1,028 ₹ | Dividend Yield | 0.03 % | ROCE | 19.4 % |
| ROE | 13.8 % | Face Value | 2.00 ₹ | DMA 50 | 18,521 ₹ | DMA 200 | 17,919 ₹ |
| Chg in FII Hold | 1.02 % | Chg in DII Hold | -0.75 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 56.2 | MACD | 91.1 | Volume | 1,92,812 | Avg Vol 1Wk | 1,85,088 |
| Low price | 10,300 ₹ | High price | 22,840 ₹ | PEG Ratio | 4.11 | Debt to equity | 0.02 |
| 52w Index | 69.6 % | Qtr Profit Var | 406 % | EPS | 163 ₹ | Industry PE | 40.7 |
📊 Power India (POWERINDIA) shows strong earnings growth and bullish technical indicators, though valuations are stretched compared to industry averages. The RSI at 56.2 indicates neutral-to-positive momentum, while MACD (91.1) signals strong bullish sentiment. The optimal entry price would be around ₹18,800–₹19,000, near the 50 DMA support. If already holding, consider exiting around ₹22,200–₹22,400, close to the resistance near the recent high.
✅ Positive
- ROCE (19.4%) and ROE (13.8%) reflect healthy efficiency and profitability.
- Debt-to-equity ratio of 0.02 indicates negligible leverage.
- Quarterly PAT growth from ₹132 Cr. to ₹264 Cr. (+406%) shows exceptional earnings momentum.
- EPS of ₹163 supports strong profitability visibility.
- FII holdings increased (+1.02%), showing foreign investor confidence.
- MACD (91.1) indicates strong bullish momentum in the short term.
⚠️ Limitation
- High P/E (118) compared to industry PE (40.7) suggests significant overvaluation.
- Dividend yield of 0.03% is negligible.
- PEG ratio of 4.11 indicates limited growth relative to valuation.
- Stock trading near upper range of 52-week index (69.6%) may limit upside potential.
📉 Company Negative News
- DII holdings decreased (-0.75%), showing reduced domestic institutional support.
- High valuation may deter new investors and cap short-term gains.
📈 Company Positive News
- Strong quarterly profit growth supports investor confidence.
- Stock trading above DMA 50 and DMA 200 indicates long-term strength.
- FII inflows highlight foreign investor optimism.
🏭 Industry
- Power and energy sector benefits from rising demand for clean and renewable energy solutions.
- Industry PE at 40.7 highlights sector-wide premium valuations.
- Sector outlook remains positive with government focus on electrification and sustainability.
🔎 Conclusion
POWERINDIA is a fundamentally strong company with robust profit growth and negligible debt. While valuations are stretched, technical indicators suggest bullish momentum. For swing trading, entry near ₹18,800–₹19,000 is favorable, with an exit target around ₹22,200–₹22,400. Strong fundamentals and industry demand make it a good candidate for swing trades, though traders should remain cautious about high valuation risks.