CGPOWER - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.6

📈 Technical Analysis

• Chart Patterns: Stock is trading below its 52-week high (798 ₹), showing weakness and correction from peak levels.
• Moving Averages: Current price (672 ₹) is below both 50 DMA (699 ₹) and 200 DMA (693 ₹), confirming bearish bias.
• RSI: At 36.3, RSI is weak and near oversold territory, suggesting potential rebound but limited buying strength.
• MACD: Negative (-13.9), showing bearish momentum and trend continuation.
• Bollinger Bands: Price is near the lower band, signaling weakness and possible short-term consolidation.
• Volume Trends: Current volume (19,65,841) is almost equal to 1-week average (19,79,844), indicating steady participation but no strong momentum shift.

🎯 Momentum & Trade Zones

• Support Levels: 660 ₹ (near-term support), 630 ₹ (strong support), 518 ₹ (52-week low).
• Resistance Levels: 699 ₹ (50 DMA), 720–740 ₹ (near-term resistance), 798 ₹ (52-week high).
• Entry Zone: 660–675 ₹ (near support, favorable risk-reward).
• Exit Zone: 700–740 ₹ (near resistance/top band).
• Trend Status: Reversing downward, currently weak with bearish signals but oversold conditions may trigger short-term bounce.

✅ Positive

• Strong ROCE (35.8%) and ROE (26.0%) indicate excellent capital efficiency.
• Quarterly PAT improved (307 Cr. vs 286 Cr.), showing earnings growth (+38%).
• EPS of 7.22 ₹ supports earnings visibility.
• FII holdings increased (+0.35%), showing foreign investor confidence.
• Low debt-to-equity ratio (0.01) ensures financial stability.

⚠️ Limitation

• High P/E ratio (95.0) compared to industry average (43.9), suggesting expensive valuation.
• PEG ratio of 3.08 indicates stretched valuation relative to growth.
• Stock trading at only 55% of its 52-week range, reflecting underperformance.
• RSI and MACD both weak, signaling poor short-term momentum.

📉 Company Negative News

• DII holdings decreased (-0.07%), showing reduced domestic institutional confidence.
• Stock price correction from highs indicates weak sentiment and technical pressure.

📊 Company Positive News

• Quarterly PAT growth of 38% shows strong operational performance.
• EPS of 7.22 ₹ highlights profitability despite valuation concerns.
• FII stake increased, boosting investor sentiment.

🏭 Industry

• Industry P/E at 43.9, much lower than CG Power’s valuation, suggesting premium pricing.
• Power and industrial equipment sector benefiting from infrastructure growth and electrification demand.

📝 Conclusion

• CG Power is in a bearish phase, trading below key moving averages with weak momentum.
• Fundamentals show strong efficiency and earnings growth, but valuations are stretched.
• Optimal strategy: Accumulate cautiously near support (660–675 ₹) and book profits near resistance (700–740 ₹).
• Short-term outlook: Weak with possible rebound from oversold levels; long-term outlook remains positive if earnings growth sustains.