RECLTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | RECLTD | Market Cap | 98,048 Cr. | Current Price | 372 ₹ | High / Low | 452 ₹ |
| Stock P/E | 5.72 | Book Value | 314 ₹ | Dividend Yield | 4.83 % | ROCE | 9.92 % |
| ROE | 21.5 % | Face Value | 10.0 ₹ | DMA 50 | 364 ₹ | DMA 200 | 385 ₹ |
| Chg in FII Hold | -1.51 % | Chg in DII Hold | 0.35 % | PAT Qtr | 4,043 Cr. | PAT Prev Qtr | 4,426 Cr. |
| RSI | 55.0 | MACD | 1.68 | Volume | 1,10,22,049 | Avg Vol 1Wk | 1,46,21,892 |
| Low price | 331 ₹ | High price | 452 ₹ | PEG Ratio | 0.35 | Debt to equity | 6.24 |
| 52w Index | 34.2 % | Qtr Profit Var | 0.35 % | EPS | 65.2 ₹ | Industry PE | 19.3 |
📊 Analysis: RECLTD trades at a very attractive valuation (P/E 5.72 vs industry 19.3) with strong ROE (21.5%) and a high dividend yield (4.83%). EPS at ₹65.2 reflects solid earnings power. The current price (₹372) is above its 50 DMA (₹364) but slightly below 200 DMA (₹385), showing mixed technical signals. RSI at 55.0 indicates neutral momentum, while MACD (1.68) suggests mild bullish bias. Quarterly PAT is stable (₹4,426 Cr → ₹4,043 Cr), though slightly lower. High debt-to-equity (6.24) is a concern, and FII holdings declined (-1.51%). Overall, RECLTD is a good swing trade candidate with strong fundamentals but requires caution due to leverage and institutional outflows.
💡 Optimal Entry Price: Around ₹365–₹370 (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹445–₹450 (recent high resistance). Exit below ₹360 if weakness persists to protect capital.
✅ Positive
- Attractive valuation (P/E 5.72 vs industry 19.3).
- Strong ROE at 21.5% and decent ROCE at 9.92%.
- High dividend yield of 4.83% adds investor appeal.
- EPS of ₹65.2 reflects solid earnings power.
- PEG ratio of 0.35 indicates undervaluation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (6.24) increases financial risk.
- Price below 200 DMA shows resistance overhead.
- Volume lower than weekly average, indicating reduced participation.
📉 Company Negative News
- Sequential decline in PAT (₹4,426 Cr → ₹4,043 Cr).
- FII holdings decreased (-1.51%).
📈 Company Positive News
- Stable profitability with strong EPS.
- DII holdings increased (+0.35%).
- Dividend yield supports investor confidence.
🏭 Industry
- Industry P/E at 19.3 highlights RECLTD’s undervaluation.
- Power finance sector benefits from infrastructure and energy demand growth.
🔎 Conclusion
RECLTD is a fundamentally undervalued stock with strong ROE, high dividend yield, and solid earnings. It is a good swing trade candidate with entry near ₹365–₹370 and exit near ₹445–₹450. Risk management is essential due to high debt levels and declining FII interest.