RECLTD - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📈 Positive

• 📊 Strong fundamentals: ROE of 21.5% and ROCE of 9.92% reflect solid profitability and capital efficiency.
• 💰 High dividend yield of 4.86% adds attractive passive income potential.
• 📘 P/E of 5.69 vs industry P/E of 23.4 suggests deep undervaluation.
• 📈 PEG ratio of 0.35 indicates favorable valuation relative to growth.
• 📈 EPS of ₹65.1 and consistent PAT (₹4,426 Cr.) support earnings stability.
• 📈 DII holding increased by 0.35%, showing domestic institutional confidence.

⚠️ Limitation

• 📉 RSI at 45.6 and MACD at -0.12 suggest weak momentum and indecision.
• 📉 Price below both DMA 50 (₹377) and DMA 200 (₹407) confirms short-term technical weakness.
• 📉 Volume (66.2 lakh) below 1-week average (88.7 lakh) indicates reduced participation.
• 📉 FII holding declined by 1.19%, showing cautious foreign sentiment.
• 📉 Debt-to-equity ratio of 6.24 is high, typical for NBFCs but still a risk factor.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over high leverage and potential asset quality risks in the power financing space.

✅ Company Positive News

• ⚡ RECLTD continues to benefit from government infrastructure push and power sector reforms.
• 📈 Stable earnings and strong dividend payout support investor confidence.

🏦 Industry

• 🔌 Operates in power finance and infrastructure lending, which is cyclical but supported by policy tailwinds and electrification goals.
• 📊 Industry P/E of 23.4 reflects moderate growth expectations and valuation benchmarks.

🧾 Conclusion

• 📉 RECLTD is fundamentally strong and undervalued, but currently in a technical downtrend with weak momentum.
• 📍 Optimal entry: ₹360–₹365 (near support and below DMA levels).
• 🚪 Exit if held: ₹385–₹390 (near DMA 50) unless trend reversal is confirmed.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of volume and macro developments.

I can also compare RECLTD’s swing setup with PFC or Power Grid to help you spot relative strength opportunities.