RRKABEL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📈 Positive

• 📊 Strong quarterly earnings: PAT rose 133% QoQ (₹116 Cr. vs ₹88.8 Cr.).
• 📈 EPS of ₹35.4 and ROCE of 19.7% reflect solid profitability and capital efficiency.
• 📈 Price trading above both DMA 50 (₹1,294) and DMA 200 (₹1,293) confirms bullish momentum.
• 📈 RSI at 70.0 and MACD at 41.7 indicate strong upward trend.
• 📉 Low debt-to-equity ratio of 0.17 supports financial stability.
• 📈 Volume (13.6 lakh) above 1-week average (11.8 lakh) shows active participation.

⚠️ Limitation

• 📉 RSI at 70 suggests overbought territory, increasing risk of short-term pullback.
• 📉 P/E of 40.1 vs industry P/E of 22.5 signals premium valuation.
• 📉 PEG ratio of 2.96 implies expensive valuation relative to growth.
• 📉 FII holding declined by 0.39%, showing reduced foreign investor interest.
• 📉 Dividend yield of 0.42% offers minimal passive income.

🚫 Company Negative News

• 📉 Analysts have flagged valuation concerns and potential margin pressure due to rising input costs.

✅ Company Positive News

• 🔌 RRKABEL continues to benefit from strong demand in electrical cables and FMEG segments.
• 📈 Robust earnings and expanding distribution network support long-term growth visibility.

🏦 Industry

• 🏭 Operates in electricals and consumer durables, which benefit from infrastructure growth and urbanization.
• 📊 Industry P/E of 22.5 reflects moderate valuation benchmarks.

🧾 Conclusion

• 📈 RRKABEL is technically strong and fundamentally solid, making it a good candidate for swing trading.
• 📍 Optimal entry: ₹1,390–₹1,400 (slightly below current price and near support).
• 🚪 Exit if held: ₹1,480–₹1,500 (near resistance zone) unless momentum continues.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of RSI and valuation signals.

I can also compare RRKABEL’s swing setup with peers like Polycab or Finolex to help refine your trade timing.