⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RECLTD - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | RECLTD | Market Cap | 93,071 Cr. | Current Price | 354 ₹ | High / Low | 429 ₹ |
| Stock P/E | 5.72 | Book Value | 320 ₹ | Dividend Yield | 5.09 % | ROCE | 9.71 % |
| ROE | 20.1 % | Face Value | 10.0 ₹ | DMA 50 | 353 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 3,362 Cr. | PAT Prev Qtr | 4,043 Cr. |
| RSI | 47.8 | MACD | 6.65 | Volume | 53,26,084 | Avg Vol 1Wk | 1,11,32,094 |
| Low price | 304 ₹ | High price | 429 ₹ | PEG Ratio | 0.42 | Debt to equity | 6.11 |
| 52w Index | 39.7 % | Qtr Profit Var | -20.6 % | EPS | 61.8 ₹ | Industry PE | 19.8 |
RECLTD offers attractive valuation with a low P/E (5.72), strong dividend yield (5.09%), and solid ROE (20.1%). However, the company faces challenges with high debt-to-equity (6.11) and declining quarterly profits (-20.6%). The stock is currently near its 50 DMA (₹353) and slightly below the 200 DMA (₹369), suggesting consolidation. Optimal entry would be around ₹340–₹350 on dips. If already holding, consider exiting near ₹420–₹425 to capture gains before resistance.
✅ Positive
- Attractive valuation with P/E of 5.72 compared to industry average of 19.8.
- Strong dividend yield of 5.09% provides steady income.
- ROE of 20.1% indicates efficient shareholder returns.
- PEG ratio of 0.42 suggests undervaluation relative to growth.
⚠️ Limitation
- ROCE at 9.71% is modest compared to peers.
- Debt-to-equity ratio of 6.11 is high, raising financial risk.
- Quarterly PAT declined from ₹4,043 Cr to ₹3,362 Cr (-20.6%).
- FII holdings decreased by 0.67%, showing reduced foreign investor confidence.
📰 Company Negative News
- Decline in quarterly profits highlights earnings pressure.
- High leverage remains a structural concern.
🌟 Company Positive News
- Strong dividend payout supports investor sentiment.
- Stable domestic institutional support (+0.15% DII holdings).
🏭 Industry
- Industry P/E at 19.8, significantly higher than RECLTD’s 5.72, showing undervaluation.
- Power finance sector benefits from infrastructure and energy demand growth.
📌 Conclusion
RECLTD is a value play with strong dividend yield and low valuation, but high debt and declining profits limit upside. Best swing trade entry is around ₹340–₹350. If already holding, exit near ₹420–₹425 to secure gains.