⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATAPOWER - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for TATAPOWER based on the provided parameters
Swing Trade Rating: 3.5
| Stock Code | TATAPOWER | Market Cap | 1,28,853 Cr. | Current Price | 403 ₹ | High / Low | 465 ₹ |
| Stock P/E | 115 | Book Value | 57.6 ₹ | Dividend Yield | 0.62 % | ROCE | 7.59 % |
| ROE | 6.09 % | Face Value | 1.00 ₹ | DMA 50 | 409 ₹ | DMA 200 | 397 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.78 % | PAT Qtr | 334 Cr. | PAT Prev Qtr | -160 Cr. |
| RSI | 44.7 | MACD | -5.00 | Volume | 63,85,065 | Avg Vol 1Wk | 74,66,706 |
| Low price | 342 ₹ | High price | 465 ₹ | PEG Ratio | -4.50 | Debt to equity | 1.42 |
| 52w Index | 49.4 % | Qtr Profit Var | -18.4 % | EPS | 3.52 ₹ | Industry PE | 31.9 |
📈 Optimal Entry Price: Around 395–405 ₹ (near 200 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 440–455 ₹ resistance zone. A stop-loss can be placed below 380 ₹.
Positive
- ✅ EPS of 3.52 ₹ shows earnings consistency despite volatility.
- ✅ Dividend yield of 0.62% provides modest income.
- ✅ PAT recovery to 334 Cr. from -160 Cr. supports sentiment.
- ✅ DII holdings increased (+0.78%), showing domestic institutional confidence.
- ✅ Stock trading near DMA levels shows technical support.
Limitation
- ⚠️ Extremely high P/E (115) compared to industry PE (31.9), suggesting severe overvaluation.
- ⚠️ PEG ratio of -4.50 indicates poor growth prospects relative to valuation.
- ⚠️ Debt-to-equity ratio is high (1.42), increasing financial risk.
- ⚠️ ROCE (7.59%) and ROE (6.09%) are weak compared to peers.
- ⚠️ RSI at 44.7 and MACD at -5.00 show weak momentum.
Company Negative News
- 📉 Quarterly profit variation (-18.4%) highlights earnings volatility.
- 📉 High debt levels raise concerns about leverage.
- 📉 Weak technical indicators suggest short-term downside risk.
Company Positive News
- 📈 PAT recovery from losses supports sentiment.
- 📈 DII holdings increased, reflecting domestic institutional support.
- 📈 Stock trading near DMA levels shows short-term strength.
Industry
- 🏭 Industry PE is lower (31.9), meaning TATAPOWER trades at a significant premium.
- 🏭 Power and energy sector remains structurally strong with renewable energy expansion and infrastructure demand.
Conclusion
🔎 TATAPOWER is a fair candidate for swing trading, supported by technical strength and institutional interest. However, extreme overvaluation, high debt, and weak profitability limit upside potential. Entry near 395–405 ₹ and exit around 440–455 ₹ provide a tactical swing trade setup.
Would you like me to extend this into a peer comparison with NTPC, Adani Power, and Power Grid to benchmark valuation and momentum?