RECLTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | RECLTD | Market Cap | 94,375 Cr. | Current Price | 359 ₹ | High / Low | 410 ₹ |
| Stock P/E | 5.80 | Book Value | 320 ₹ | Dividend Yield | 5.02 % | ROCE | 9.71 % |
| ROE | 20.1 % | Face Value | 10.0 ₹ | DMA 50 | 347 ₹ | DMA 200 | 363 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 3,362 Cr. | PAT Prev Qtr | 4,043 Cr. |
| RSI | 59.7 | MACD | 2.62 | Volume | 50,08,906 | Avg Vol 1Wk | 37,00,656 |
| Low price | 304 ₹ | High price | 410 ₹ | PEG Ratio | 0.42 | Debt to equity | 6.11 |
| 52w Index | 51.6 % | Qtr Profit Var | -20.6 % | EPS | 61.8 ₹ | Industry PE | 18.9 |
📊 RECLTD shows strong fundamentals with low P/E (5.80 vs industry 18.9), high dividend yield (5.02%), and solid ROE (20.1%). Technicals are neutral to mildly bullish with RSI at 59.7 and MACD positive (2.62). The stock trades near its 50 DMA (347 ₹) and 200 DMA (363 ₹), suggesting consolidation support. However, high debt-to-equity (6.11) and quarterly profit decline (-20.6%) remain concerns. Valuation is attractive, making it a favorable candidate for swing trading.
💡 Optimal Entry Price: Around 345–355 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near 395–405 ₹ (resistance zone) or trail stop-loss at 335 ₹ to protect downside.
🌟 Positive
- 📈 Low P/E (5.80) compared to industry average (18.9).
- 💰 Attractive dividend yield (5.02%).
- 📊 Strong ROE (20.1%) and EPS of 61.8 ₹.
- 📉 DII holdings increased (+0.15%), showing domestic support.
⚠️ Limitation
- 📌 High debt-to-equity ratio (6.11).
- 📌 ROCE at 9.71% is modest.
- 📌 FII holdings decreased (-0.67%), showing reduced foreign confidence.
- 📌 Quarterly PAT decline (-20.6%) indicates earnings pressure.
📰 Company Negative News
- No major negative news reported, but leverage and profit decline remain concerns.
📰 Company Positive News
- Strong dividend payouts and attractive valuation.
- Stable earnings visibility despite quarterly decline.
🏭 Industry
- Industry P/E at 18.9, highlighting RECLTD’s undervaluation.
- Power finance sector benefits from infrastructure growth and government support.
✅ Conclusion
RECLTD is fundamentally undervalued with strong dividend yield and solid ROE, making it a good candidate for swing trading. Entry near 345–355 ₹ offers favorable risk-reward, while profit booking near 395–405 ₹ is prudent. High leverage and profit decline remain key risks, so disciplined stop-loss management is essential.
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