RKFORGE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | RKFORGE | Market Cap | 10,136 Cr. | Current Price | 562 ₹ | High / Low | 863 ₹ |
| Stock P/E | 40.6 | Book Value | 169 ₹ | Dividend Yield | 0.36 % | ROCE | 6.52 % |
| ROE | 10.9 % | Face Value | 2.00 ₹ | DMA 50 | 518 ₹ | DMA 200 | 587 ₹ |
| Chg in FII Hold | -1.66 % | Chg in DII Hold | 0.53 % | PAT Qtr | 19.9 Cr. | PAT Prev Qtr | 0.37 Cr. |
| RSI | 68.6 | MACD | 2.79 | Volume | 18,69,214 | Avg Vol 1Wk | 6,34,166 |
| Low price | 473 ₹ | High price | 863 ₹ | PEG Ratio | 2.89 | Debt to equity | 0.71 |
| 52w Index | 22.9 % | Qtr Profit Var | 30.6 % | EPS | 13.4 ₹ | Industry PE | 29.0 |
📊 Analysis: RKFORGE trades at a premium valuation (P/E 40.6 vs industry 29.0) with modest efficiency metrics (ROCE 6.52%, ROE 10.9%). EPS at ₹13.4 is moderate, and dividend yield at 0.36% is negligible. The current price (₹562) is above 50 DMA (₹518) but slightly below 200 DMA (₹587), showing mixed technical signals. RSI at 68.6 indicates the stock is nearing overbought territory, while MACD (2.79) suggests mild bullish momentum. Quarterly PAT improved sharply (₹0.37 Cr → ₹19.9 Cr), reflecting strong earnings recovery. Despite stretched valuations and weak ROCE, strong volume activity and profit growth make RKFORGE a fair swing trade candidate.
💡 Optimal Entry Price: Around ₹545–₹555 (near support zone close to 50 DMA).
🚪 Exit Strategy: If already holding, consider booking profits near ₹590–₹600 (200 DMA resistance). Exit below ₹540 if weakness persists to protect capital.
✅ Positive
- Quarterly PAT recovery (₹0.37 Cr → ₹19.9 Cr).
- EPS of ₹13.4 shows improving earnings power.
- Strong trading volume above weekly average.
- DII holdings increased (+0.53%).
⚠️ Limitation
- Valuation premium (P/E 40.6 vs industry 29.0).
- Weak ROCE (6.52%) and modest ROE (10.9%).
- Dividend yield negligible at 0.36%.
- RSI near overbought zone.
📉 Company Negative News
- FII holdings decreased (-1.66%).
- 52-week index at 22.9% shows weak price performance relative to highs.
📈 Company Positive News
- Quarterly profit variation of 30.6% indicates strong earnings momentum.
- Volume surge reflects strong investor interest.
🏭 Industry
- Industry P/E at 29.0 highlights RKFORGE’s premium valuation.
- Forging and engineering sector benefits from auto and infrastructure demand.
🔎 Conclusion
RKFORGE shows strong earnings recovery and investor interest, making it a fair swing trade candidate. Entry near ₹545–₹555 offers a good setup, with exit near ₹590–₹600. Risk management is essential due to stretched valuations, weak ROCE, and overbought RSI levels.