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CGPOWER - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 4.0

Stock Code CGPOWER Market Cap 1,28,097 Cr. Current Price 813 ₹ High / Low 847 ₹
Stock P/E 106 Book Value 48.7 ₹ Dividend Yield 0.16 % ROCE 35.8 %
ROE 26.0 % Face Value 2.00 ₹ DMA 50 734 ₹ DMA 200 695 ₹
Chg in FII Hold 0.01 % Chg in DII Hold 0.49 % PAT Qtr 337 Cr. PAT Prev Qtr 307 Cr.
RSI 64.7 MACD 34.9 Volume 37,26,147 Avg Vol 1Wk 27,64,252
Low price 526 ₹ High price 847 ₹ PEG Ratio 3.44 Debt to equity 0.01
52w Index 89.6 % Qtr Profit Var 38.1 % EPS 7.60 ₹ Industry PE 37.9

📈 Chart & Trend Analysis:

- Current price ₹813 is above both 50 DMA (₹734) and 200 DMA (₹695), reflecting strong short-term and medium-term momentum.

- RSI at 64.7 indicates bullish momentum but nearing overbought territory.

- MACD at 34.9 remains strongly positive, supporting bullish bias.

- Bollinger Bands show price near upper band, highlighting potential resistance.

- Volume (37,26,147) is above 1-week average (27,64,252), confirming strong participation.

🎯 Entry Zone: ₹780–800 (support near 50 DMA)

🎯 Exit Zone: ₹835–845 (resistance near recent highs)

📊 Status: Trending upward with bullish bias; consolidation possible if RSI overheats beyond 70.

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Positive

✔ Price trading above both 50 DMA and 200 DMA, showing strong technical support

✔ Strong ROCE (35.8%) and ROE (26.0%) highlight excellent efficiency

✔ EPS of ₹7.60 supports earnings visibility

✔ Quarterly PAT growth (+38.1%) shows strong earnings momentum

✔ Debt-to-equity ratio of 0.01 indicates negligible leverage

Limitation

⚠ Very high P/E (106 vs industry 37.9) indicates premium valuation

⚠ RSI nearing overbought zone, limiting upside potential

⚠ PEG ratio (3.44) highlights expensive growth prospects

⚠ Dividend yield of 0.16% remains low

Company Negative News

📉 Valuation stretched compared to industry peers

📉 RSI near overbought levels increases risk of short-term correction

Company Positive News

📈 Increase in DII holdings (+0.49%) reflects domestic institutional support

📈 PAT growth (₹337 Cr vs ₹307 Cr) highlights earnings strength

📈 FII holdings stable (+0.01%), showing confidence

Industry

🏭 Electrical equipment sector trades at lower average PE (37.9), making CGPOWER relatively expensive compared to peers

🏭 Sector demand supported by infrastructure growth and industrial expansion

Conclusion

CGPOWER is trending upward with strong bullish signals supported by MACD, RSI, and volume strength. Entry near ₹780–800 offers favorable risk-reward, with exits around ₹835–845. Strong fundamentals and negligible debt support long-term accumulation, but stretched valuation and RSI nearing overbought levels require cautious execution.

This HTML snapshot integrates short-term bullish momentum with valuation-driven caution. Would you like me to also prepare a sector overlay comparison (CGPOWER vs SIEMENS, ABB, and SCHNEIDER) so you can benchmark its positioning against peers in your workflow?

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