TATAPOWER - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | TATAPOWER | Market Cap | 1,18,659 Cr. | Current Price | 371 ₹ | High / Low | 417 ₹ |
| Stock P/E | 50.8 | Book Value | 59.0 ₹ | Dividend Yield | 0.61 % | ROCE | 14.8 % |
| ROE | 18.1 % | Face Value | 1.00 ₹ | DMA 50 | 372 ₹ | DMA 200 | 384 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.86 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 520 Cr. |
| RSI | 54.0 | MACD | -3.71 | Volume | 45,85,850 | Avg Vol 1Wk | 46,15,970 |
| Low price | 326 ₹ | High price | 417 ₹ | PEG Ratio | 1.96 | Debt to equity | 1.24 |
| 52w Index | 49.8 % | Qtr Profit Var | -57.3 % | EPS | 7.32 ₹ | Industry PE | 24.8 |
📊 TATAPOWER shows moderate potential for swing trading. The stock is trading close to its 50 DMA (372 ₹) and slightly below its 200 DMA (384 ₹), indicating consolidation with mild bearish undertones. RSI at 54.0 suggests neutral momentum, while MACD at -3.71 reflects short-term weakness. Valuation is expensive with a P/E of 50.8 compared to the industry average of 24.8, and PEG ratio of 1.96 signals overvaluation relative to growth. Fundamentals are decent with ROCE at 14.8% and ROE at 18.1%, though quarterly PAT has declined (-57.3%). Overall, the stock offers swing trading opportunities but requires caution due to stretched valuation and earnings pressure.
✅ Optimal Entry Price: Around 360–370 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 395–405 ₹ resistance zone, or exit if price falls below 355 ₹ support.
Positive
- ROCE (14.8%) and ROE (18.1%) show moderate efficiency
- DII holdings increased (+0.86%), showing domestic institutional support
- Dividend yield of 0.61% provides passive income
- EPS of 7.32 ₹ supports earnings base
Limitation
- High P/E ratio (50.8) compared to industry average (24.8)
- PEG ratio (1.96) suggests overvaluation relative to growth
- Debt-to-equity ratio at 1.24, showing high leverage
- Stock trading below 200 DMA, showing weak long-term momentum
Company Negative News
- Quarterly PAT declined (431 Cr vs 520 Cr)
- Profit variation (-57.3%) highlights earnings pressure
- FII holdings decreased (-0.19%), showing reduced foreign investor confidence
Company Positive News
- DII inflows indicate domestic investor trust
- Dividend yield adds investor appeal
- Stock trading near mid-range of 52-week index (49.8%), showing resilience
Industry
- Power and energy sector remains in growth phase with rising demand
- Industry PE at 24.8, showing TATAPOWER trades at a premium
- Sector outlook supported by renewable energy initiatives and infrastructure expansion
Conclusion
⚖️ TATAPOWER is a fair candidate for swing trading with moderate fundamentals and sector support. Entry near 360–370 ₹ offers a favorable risk-reward setup, while profit booking should be considered around 395–405 ₹. High leverage and declining profits limit upside, so traders should remain cautious.