RRKABEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | RRKABEL | Market Cap | 15,815 Cr. | Current Price | 1,396 ₹ | High / Low | 1,578 ₹ |
| Stock P/E | 34.2 | Book Value | 206 ₹ | Dividend Yield | 0.43 % | ROCE | 19.7 % |
| ROE | 15.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,438 ₹ | DMA 200 | 1,379 ₹ |
| Chg in FII Hold | 0.22 % | Chg in DII Hold | 0.07 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 116 Cr. |
| RSI | 44.3 | MACD | -13.3 | Volume | 78,603 | Avg Vol 1Wk | 1,54,746 |
| Low price | 750 ₹ | High price | 1,578 ₹ | PEG Ratio | 2.52 | Debt to equity | 0.17 |
| 52w Index | 78.0 % | Qtr Profit Var | 91.1 % | EPS | 39.7 ₹ | Industry PE | 19.1 |
📊 RR Kabel shows decent fundamentals but mixed technical signals, making it a moderate candidate for swing trading. The RSI at 44.3 is neutral, while MACD (-13.3) indicates slight bearish momentum. The stock is trading near its 200 DMA (1,379 ₹) but below its 50 DMA (1,438 ₹), suggesting resistance overhead. Valuation is stretched with a P/E of 34.2 compared to industry average of 19.1, though strong profit growth supports optimism.
💡 Optimal Entry Price: Around 1,370–1,390 ₹ (near 200 DMA support)
💡 Exit Strategy (if already holding): Consider exiting near 1,430–1,450 ₹ (50 DMA resistance) unless momentum strengthens.
🌟 Positive
- Strong ROCE (19.7%) and ROE (15.2%) indicate efficient capital use.
- Low debt-to-equity ratio (0.17) shows financial stability.
- Quarterly PAT growth (130 Cr. vs 116 Cr.) reflects earnings improvement.
- EPS of 39.7 ₹ supports long-term earnings consistency.
- FII (+0.22%) and DII (+0.07%) holdings increased slightly.
⚠️ Limitation
- High P/E ratio (34.2) compared to industry average (19.1), suggesting overvaluation.
- Dividend yield of 0.43% is low.
- MACD negative, showing weak short-term momentum.
- Trading volume lower than 1-week average, indicating reduced liquidity.
📉 Company Negative News
- Stock trading below 50 DMA, signaling resistance overhead.
- Valuation stretched relative to industry peers.
- Neutral RSI with bearish MACD suggests limited upside in short term.
📈 Company Positive News
- Quarterly profit growth of 91.1% shows strong operational performance.
- Financially stable with low debt levels.
- Institutional investors marginally increasing holdings.
🏭 Industry
- Industry P/E at 19.1, while RR Kabel trades at a premium (34.2).
- Cables and wires sector benefits from infrastructure expansion in India.
- Competition remains strong, but RR Kabel has growing market presence.
✅ Conclusion
RR Kabel is fundamentally stable but technically mixed, making it a cautious swing trade candidate. Entry near 1,370–1,390 ₹ is favorable, with an exit target around 1,430–1,450 ₹. Traders should remain cautious due to stretched valuations and weak momentum, while long-term investors may hold for sectoral growth potential.