RRKABEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | RRKABEL | Market Cap | 16,066 Cr. | Current Price | 1,424 ₹ | High / Low | 1,563 ₹ |
| Stock P/E | 34.7 | Book Value | 206 ₹ | Dividend Yield | 0.42 % | ROCE | 19.7 % |
| ROE | 15.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,414 ₹ | DMA 200 | 1,353 ₹ |
| Chg in FII Hold | 0.22 % | Chg in DII Hold | 0.07 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 116 Cr. |
| RSI | 51.1 | MACD | -23.6 | Volume | 3,39,321 | Avg Vol 1Wk | 2,55,994 |
| Low price | 750 ₹ | High price | 1,563 ₹ | PEG Ratio | 2.56 | Debt to equity | 0.17 |
| 52w Index | 82.9 % | Qtr Profit Var | 91.1 % | EPS | 39.7 ₹ | Industry PE | 18.2 |
📊 Analysis: RRKABEL shows strong fundamentals with ROCE (19.7%) and ROE (15.2%), supported by low debt-to-equity (0.17). EPS at ₹39.7 is healthy, and quarterly PAT improved (₹116 Cr → ₹130 Cr), reflecting earnings growth. The current price (₹1,424) is near its 50 DMA (₹1,414) and comfortably above 200 DMA (₹1,353), indicating technical support. RSI at 51.1 suggests neutral momentum, while MACD (-23.6) shows mild bearish divergence. Valuation is stretched (P/E 34.7 vs industry 18.2, PEG 2.56), but strong profit variation (91.1%) and volume activity support swing trade potential.
💡 Optimal Entry Price: Around ₹1,400–₹1,415 (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹1,550–₹1,560 (recent high resistance). Exit below ₹1,370 if weakness persists to protect capital.
✅ Positive
- Strong ROCE (19.7%) and ROE (15.2%).
- Low debt-to-equity ratio (0.17).
- Quarterly PAT growth (₹116 Cr → ₹130 Cr).
- EPS of ₹39.7 reflects solid earnings power.
- Institutional holdings increased (FII +0.22%, DII +0.07%).
⚠️ Limitation
- Valuation stretched (P/E 34.7 vs industry 18.2).
- PEG ratio of 2.56 indicates expensive growth expectations.
- MACD shows mild bearish divergence.
📉 Company Negative News
- Valuation premium may limit upside potential.
- MACD bearish signal suggests caution in short term.
📈 Company Positive News
- Quarterly profit variation of 91.1% shows strong earnings momentum.
- Volume higher than weekly average, indicating strong investor interest.
- Price trading above 200 DMA, confirming long-term strength.
🏭 Industry
- Industry P/E at 18.2 highlights RRKABEL’s premium valuation.
- Electrical and cables sector benefits from infrastructure and housing demand growth.
🔎 Conclusion
RRKABEL is a fundamentally strong company with solid efficiency metrics and low debt. Despite premium valuations, strong profit growth and technical support make it a good swing trade candidate. Entry near ₹1,400–₹1,415 and exit near ₹1,550–₹1,560 provide a favorable risk-reward setup. Risk management is essential due to stretched valuations and mild bearish signals.