TORNTPOWER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.5

📊 TORNTPOWER is currently trading at ₹1,275, slightly below its 50 DMA (₹1,292) and 200 DMA (₹1,350), reflecting mild bearish momentum. RSI at 38.9 suggests the stock is near oversold territory, while MACD at -7.92 indicates weak sentiment. The optimal entry price would be near ₹1,230–₹1,250, closer to support levels. If already holding, consider exiting around ₹1,350–₹1,380, near resistance zones.

✅ Positive

• 📈 Strong ROCE (16.9%) and ROE (18.7%), showing efficient capital utilization
• 💰 Dividend yield of 1.52%, providing shareholder return
• 📊 EPS at ₹57.3, reflecting consistent profitability
• 📈 Quarterly PAT increased from ₹685 Cr. to ₹746 Cr., a 60.8% growth
• 📊 DII holding increased by 0.75%, showing domestic institutional support
• 📈 PEG ratio at 0.42, suggesting reasonable valuation relative to growth

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming weak technical trend
• 📊 P/E ratio (22.2) is only slightly above industry average (21.9), limiting valuation advantage
• 📉 52-week index at 19.3%, reflecting poor performance compared to peers
• 📉 Debt-to-equity ratio at 0.38, showing moderate leverage risk

🚨 Company Negative News

• 📉 FII holding decreased by -0.97%, showing reduced foreign investor confidence
• 📉 Stock trading well below its 52-week high of ₹1,640, indicating weak sentiment

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+60.8%) highlights operational improvement
• 📊 EPS at ₹57.3 supports valuation despite technical weakness
• 📈 DII inflows (+0.75%) provide stability against FII outflows

🏭 Industry

• 📊 Industry P/E at 21.9 is close to TORNTPOWER’s, suggesting fair sector alignment
• 🌐 Power sector remains strategically important with steady demand for electricity and infrastructure growth

📌 Conclusion

TORNTPOWER is a moderate swing trade candidate. While fundamentals show profitability and growth, technicals remain weak with bearish signals. Entry is best near ₹1,230–₹1,250, while exit should be considered around ₹1,350–₹1,380. Traders should monitor RSI and MACD trends closely before committing.

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