RTNINDIA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.1

📊 Based on the given parameters, RTNINDIA is a weak candidate for swing trading. The company reported a massive quarterly loss (-401 Cr vs 514 Cr profit previously), with EPS turning negative (-2.88 ₹). Technical indicators (RSI 26.4, MACD -1.97) show strong bearish momentum, and the stock is trading below both DMA 50 and DMA 200, indicating a downtrend. While ROCE (10.6%) and ROE (10.7%) are modest and debt-to-equity (0.56) is manageable, the absence of dividend yield and poor earnings outlook limit attractiveness.

💡 Optimal Entry Price: Around 38–39 ₹ (near 52-week low support).

🚪 Exit Strategy: If already holding, consider exiting near 45–47 ₹ resistance or on breakdown below 38 ₹.

✅ Positive

• 📊 ROCE (10.6%) and ROE (10.7%) show moderate efficiency
• 📉 Debt-to-equity ratio at 0.56, manageable leverage
• 📈 Strong trading volumes (22,29,951 vs avg 13,17,558), showing active participation
• 📊 Slight increase in FII holdings (+0.22%)

⚠️ Limitation

• 📉 No dividend yield (0.00%)
• 📊 EPS negative (-2.88 ₹)
• 📉 RSI at 26.4, oversold but bearish
• 📊 MACD negative (-1.97), weak momentum

🚨 Company Negative News

• 📉 Quarterly PAT collapsed (-401 Cr vs 514 Cr)
• 📊 DII holdings declined (-0.04%)

🌟 Company Positive News

• 📈 FII holdings increased (+0.22%)
• 📊 Strong trading activity with higher-than-average volumes

🏭 Industry

• 📊 Industry PE at 42.2, much higher than RTNINDIA’s valuation (no valid P/E due to losses)
• 📈 Power and infrastructure sector remains strategically important but cyclical in profitability

📌 Conclusion

RTNINDIA is not an attractive swing trade candidate currently due to heavy losses, negative EPS, and bearish technical signals. Entry near 38–39 ₹ may offer limited upside, while exits should be targeted near 45–47 ₹. Traders should remain cautious and use strict stop-loss management given weak fundamentals and poor earnings visibility.

I can also prepare a comparison of RTNINDIA with another mid-cap power sector stock to highlight relative swing trade opportunities.