TATAPOWER - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | TATAPOWER | Market Cap | 1,27,255 Cr. | Current Price | 398 ₹ | High / Low | 417 ₹ |
| Stock P/E | 106 | Book Value | 59.0 ₹ | Dividend Yield | 0.56 % | ROCE | 14.8 % |
| ROE | 18.1 % | Face Value | 1.00 ₹ | DMA 50 | 380 ₹ | DMA 200 | 383 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.86 % | PAT Qtr | -160 Cr. | PAT Prev Qtr | 431 Cr. |
| RSI | 61.3 | MACD | 6.98 | Volume | 88,80,631 | Avg Vol 1Wk | 95,71,837 |
| Low price | 332 ₹ | High price | 417 ₹ | PEG Ratio | 6.92 | Debt to equity | 1.24 |
| 52w Index | 78.4 % | Qtr Profit Var | -116 % | EPS | 3.76 ₹ | Industry PE | 24.3 |
Analysis: Tata Power (TATAPOWER) shows weak potential for swing trading at present. The RSI at 61.3 indicates overbought conditions, while the MACD (6.98) reflects mild bullish momentum. The current price (₹398) is slightly above both the 50 DMA (₹380) and 200 DMA (₹383), showing short-term strength but limited upside. Valuation is expensive with a P/E of 106 compared to industry average of 24.3, and PEG ratio of 6.92 suggests overvaluation relative to growth. Quarterly profit turned negative (₹-160 Cr vs. ₹431 Cr), raising concerns. On the positive side, ROE (18.1%) and ROCE (14.8%) are decent, dividend yield is modest (0.56%), and DII holdings increased (+0.86%). However, debt-to-equity is high (1.24), and FII holdings decreased (-0.19%).
Optimal Entry Price: Around ₹380–390, closer to DMA support levels.
Exit Strategy (if already holding): Consider exiting near ₹410–415 if momentum continues, or cut losses if price falls below ₹380.
✅ Positive
- ROE (18.1%) and ROCE (14.8%) indicate moderate efficiency.
- DII holdings increased (+0.86%), reflecting domestic investor confidence.
- Dividend yield of 0.56% provides modest returns.
- Price trading above DMA levels shows short-term strength.
⚠️ Limitation
- Extremely high P/E (106) compared to industry average (24.3).
- PEG ratio of 6.92 suggests overvaluation relative to growth.
- Debt-to-equity ratio of 1.24 indicates high leverage.
- Quarterly profit turned negative (₹-160 Cr vs. ₹431 Cr).
📰 Company Negative News
- Quarterly losses raise concerns about profitability.
- FII holdings decreased (-0.19%), showing reduced foreign investor confidence.
🌟 Company Positive News
- DII participation increased significantly (+0.86%).
- Dividend yield supports investor interest.
- ROE and ROCE remain decent despite profit decline.
🏦 Industry
- Power sector PE (24.3) is far below Tata Power’s PE (106), making the stock highly overvalued.
- Industry supported by renewable energy push and infrastructure demand, though profitability remains volatile.
📌 Conclusion
Tata Power is a weak candidate for swing trading due to high valuation, quarterly losses, and high debt levels. Entry near ₹380–390 offers limited rebound potential. Exit near ₹410–415 if momentum continues, or below ₹380 to protect capital.