RPOWER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.5
| Stock Code | RPOWER | Market Cap | 11,973 Cr. | Current Price | 29.0 ₹ | High / Low | 76.5 ₹ |
| Book Value | 23.6 ₹ | Dividend Yield | 0.00 % | ROCE | -0.18 % | ROE | -0.99 % |
| Face Value | 10.0 ₹ | DMA 50 | 33.7 ₹ | DMA 200 | 41.1 ₹ | Chg in FII Hold | 0.16 % |
| Chg in DII Hold | -0.70 % | PAT Qtr | -0.67 Cr. | PAT Prev Qtr | 4.73 Cr. | RSI | 41.0 |
| MACD | -2.01 | Volume | 29,02,54,188 | Avg Vol 1Wk | 8,96,08,360 | Low price | 25.9 ₹ |
| High price | 76.5 ₹ | Debt to equity | 0.62 | 52w Index | 6.01 % | Qtr Profit Var | -309 % |
| EPS | -0.24 ₹ | Industry PE | 26.2 |
📊 Reliance Power (RPOWER) shows very weak fundamentals with negative ROCE (-0.18%) and ROE (-0.99%), consistent losses (PAT -0.67 Cr.), and no dividend yield. The stock is trading well below both 50 DMA (33.7 ₹) and 200 DMA (41.1 ₹), with RSI at 41.0 indicating oversold conditions and MACD at -2.01 showing bearish momentum. Despite strong trading volumes, the company’s financial weakness and poor sentiment make it a risky candidate for swing trading.
💡 Optimal Entry Price: Around 27 ₹ – 29 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 33 ₹ – 35 ₹ (resistance at 50 DMA) or place a stop-loss below 26 ₹.
✅ Positive
- Strong trading volume (29 crore vs. 8.9 crore average) indicates active investor interest.
- Book value of 23.6 ₹ is close to current price, offering some asset backing.
- FII holdings increased slightly (+0.16%), showing marginal foreign investor interest.
⚠️ Limitation
- Negative ROCE (-0.18%) and ROE (-0.99%) reflect poor capital efficiency.
- Consistent losses with negative EPS (-0.24 ₹).
- Stock trading far below DMA levels indicates strong bearish trend.
- No dividend yield, limiting investor returns outside capital gains.
📉 Company Negative News
- Quarterly PAT dropped from 4.73 Cr. to -0.67 Cr., showing continued losses.
- DII holdings decreased (-0.70%), reflecting reduced domestic institutional confidence.
- Stock trading at only 6.01% of its 52-week range, showing extreme weakness.
📈 Company Positive News
- Oversold RSI (41.0) may trigger short-term technical rebound.
- Marginal increase in FII holdings provides slight support.
🏭 Industry
- Industry PE at 26.2 vs. RPOWER’s negative earnings highlights severe underperformance.
- Power sector benefits from long-term demand, but company-specific fundamentals remain weak.
🔎 Conclusion
Reliance Power is fundamentally weak with consistent losses and poor efficiency, though strong volumes and oversold RSI may offer short-term speculative opportunities. Swing traders may enter near 27 ₹ – 29 ₹ with a target around 33 ₹ – 35 ₹. Stop-loss below 26 ₹ is recommended. The stock offers limited swing trade potential with a rating of 2.5.