RRKABEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | RRKABEL | Market Cap | 25,973 Cr. | Current Price | 2,296 ₹ | High / Low | 2,365 ₹ |
| Stock P/E | 51.8 | Book Value | 227 ₹ | Dividend Yield | 0.41 % | ROCE | 28.0 % |
| ROE | 21.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,908 ₹ | DMA 200 | 1,573 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.61 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 74.0 | MACD | 108 | Volume | 17,42,083 | Avg Vol 1Wk | 8,77,588 |
| Low price | 1,165 ₹ | High price | 2,365 ₹ | PEG Ratio | 1.33 | Debt to equity | 0.13 |
| 52w Index | 94.3 % | Qtr Profit Var | 30.0 % | EPS | 43.0 ₹ | Industry PE | 26.3 |
📊 RRKABEL shows strong fundamentals with ROCE (28%) and ROE (21.3%), supported by low debt-to-equity (0.13). Quarterly PAT growth (+30%) and EPS of 43 ₹ highlight earnings strength. Technicals are bullish with RSI at 74 (overbought) and MACD positive (108), supported by high trading volume. However, the stock trades at a premium valuation (P/E 51.8 vs industry 26.3), raising caution. Price is near its 52-week high (2,365 ₹), suggesting limited immediate upside.
💡 Optimal Entry Price: Around 1,900–1,950 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near 2,350–2,360 ₹ (resistance zone) or trail stop-loss at 2,200 ₹ to protect gains.
🌟 Positive
- 📈 Strong ROCE (28%) and ROE (21.3%).
- 💰 Low debt-to-equity ratio (0.13) ensures financial stability.
- 📊 PAT growth (166 Cr vs 130 Cr, +30%).
- 📉 FII holdings increased (+0.70%), showing foreign investor confidence.
⚠️ Limitation
- 📌 High P/E (51.8) compared to industry average (26.3).
- 📌 RSI at 74 indicates overbought territory.
- 📌 DII holdings decreased (-0.61%), showing mixed sentiment.
- 📌 PEG ratio (1.33) suggests valuation is stretched relative to growth.
📰 Company Negative News
- No major negative news reported, but overvaluation and overbought technicals remain concerns.
📰 Company Positive News
- Strong quarterly profit growth and rising institutional interest.
- Technical strength with price trading above both 50 DMA and 200 DMA.
🏭 Industry
- Industry P/E at 26.3, highlighting RRKABEL’s premium valuation.
- Electricals and cables sector benefiting from infrastructure expansion and rising demand.
✅ Conclusion
RRKABEL is fundamentally strong with bullish technicals, making it a good candidate for swing trading. Entry near 1,900–1,950 ₹ offers a favorable risk-reward setup, while profit booking near 2,350–2,360 ₹ is prudent. Overvaluation and overbought RSI remain key risks, so disciplined stop-loss management is essential.
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