RRKABEL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.2

📊 Based on the given parameters, RRKABEL appears to be a strong candidate for swing trading. The company shows robust profitability (ROCE 19.7%, ROE 15.2%) and impressive quarterly profit growth (133%). Technical indicators (RSI 59.5, MACD positive at 20.9) suggest bullish momentum. Valuation is higher than industry average (P/E 42 vs 20), but strong earnings growth supports the premium. Low debt-to-equity (0.17) adds financial stability.

💡 Optimal Entry Price: Around 1,360–1,380 ₹ (near DMA 50 support).

🚪 Exit Strategy: If already holding, consider exiting near 1,520–1,540 ₹ resistance or on breakdown below 1,360 ₹.

✅ Positive

• 📈 Strong quarterly PAT growth (116 Cr vs 88.8 Cr)
• 📊 High ROCE (19.7%) and ROE (15.2%)
• 📉 Low debt-to-equity ratio (0.17), stable balance sheet
• 📊 EPS at 35.4 ₹, supporting valuation strength

⚠️ Limitation

• 📉 High P/E ratio (42 vs industry 20)
• 📊 PEG ratio at 3.10, indicating expensive growth
• 📉 Dividend yield low at 0.42%
• 📊 Trading volume below average, weaker liquidity

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.39%)
• 📊 Valuation premium may limit upside in short term

🌟 Company Positive News

• 📈 Quarterly profit variation strong (133%)
• 📊 DII holdings increased (+0.25%), showing domestic confidence

🏭 Industry

• 📊 Industry PE at 20, lower than RRKABEL’s valuation
• 📈 Electrical and cables sector benefiting from infrastructure growth

📌 Conclusion

RRKABEL is a promising swing trade candidate with strong fundamentals and bullish technical signals. Entry near 1,360–1,380 ₹ offers a favorable setup, while exits should be targeted near 1,520–1,540 ₹. Overvaluation risk exists, but momentum and earnings growth support short-term gains.

I can also prepare a comparison of RRKABEL with another electrical sector peer to highlight relative swing trade opportunities.