CGPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | CGPOWER | Market Cap | 1,11,276 Cr. | Current Price | 706 ₹ | High / Low | 798 ₹ |
| Stock P/E | 92.2 | Book Value | 48.7 ₹ | Dividend Yield | 0.18 % | ROCE | 35.8 % |
| ROE | 26.0 % | Face Value | 2.00 ₹ | DMA 50 | 684 ₹ | DMA 200 | 679 ₹ |
| Chg in FII Hold | -1.00 % | Chg in DII Hold | 1.26 % | PAT Qtr | 337 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 52.9 | MACD | 11.8 | Volume | 16,06,518 | Avg Vol 1Wk | 37,21,932 |
| Low price | 518 ₹ | High price | 798 ₹ | PEG Ratio | 2.99 | Debt to equity | 0.01 |
| 52w Index | 67.4 % | Qtr Profit Var | 38.1 % | EPS | 7.60 ₹ | Industry PE | 33.0 |
📊 Chart & Trend Analysis: CGPOWER is trading at ₹706, above its 50 DMA (₹684) and 200 DMA (₹679), indicating short-term strength. RSI at 52.9 suggests neutral-to-positive momentum, while MACD at 11.8 confirms mild bullish bias. Bollinger Bands show price mid-range, pointing to consolidation with upward potential.
📈 Momentum Signals: Volume (16.0L) is lower than 1-week average (37.2L), reflecting reduced participation. RSI and MACD together highlight moderate bullish momentum, though weak volume may limit breakout strength.
💹 Entry Zone: Strong support lies around ₹680–₹690 (near DMA cluster). Accumulation near this zone offers risk-managed entry.
💰 Exit Zone: Resistance levels are ₹750–₹798 (recent high). A breakout above ₹798 would confirm reversal and open upside toward ₹820–₹850.
🔎 Trend Status: The stock is consolidating with bullish bias. Sustained move above ₹750–₹798 backed by volume is required to confirm breakout momentum.
Positive
- Strong ROCE (35.8%) and ROE (26.0%) highlight efficient capital use.
- EPS at ₹7.60 provides earnings visibility.
- Debt-to-equity ratio of 0.01 ensures financial stability.
- Quarterly PAT growth (₹337 Cr vs ₹307 Cr) shows sequential improvement.
Limitation
- High P/E (92.2) compared to industry average (33.0), making valuation expensive.
- PEG ratio (2.99) suggests limited growth-to-valuation comfort.
- Volume cooling below average may slow near-term momentum.
Company Negative News
- FII holding decreased (-1.00%), showing reduced foreign investor confidence.
- High valuation multiples may limit upside in the near term.
Company Positive News
- DII holding increased (+1.26%), showing strong domestic confidence.
- Quarterly profit variation (+38.1% YoY) highlights strong operational improvement.
Industry
- Power equipment and industrial solutions sector benefits from infrastructure expansion and government initiatives.
- Industry P/E at 33.0 indicates CGPOWER trades at a steep premium (P/E 92.2).
Conclusion
⚖️ CGPOWER is fundamentally strong with robust ROCE/ROE and improving profitability, but technically consolidating near resistance levels and trading at expensive valuations. Entry near ₹680–₹690 offers favorable risk-reward, while breakout above ₹798 is needed for bullish confirmation. Long-term investors may accumulate cautiously, while traders should wait for volume-backed breakout signals.
Would you like me to extend this into a peer benchmarking overlay with Siemens, ABB India, and Bharat Heavy Electricals (BHEL) so you can compare CGPOWER’s momentum against the broader industrial and power equipment sector rotation?