⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GRAPHITE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | GRAPHITE | Market Cap | 12,205 Cr. | Current Price | 624 ₹ | High / Low | 747 ₹ |
| Stock P/E | 29.1 | Book Value | 287 ₹ | Dividend Yield | 1.76 % | ROCE | 10.3 % |
| ROE | 8.26 % | Face Value | 2.00 ₹ | DMA 50 | 643 ₹ | DMA 200 | 589 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | 0.44 % | PAT Qtr | 121 Cr. | PAT Prev Qtr | 92.0 Cr. |
| RSI | 42.4 | MACD | -9.14 | Volume | 4,71,159 | Avg Vol 1Wk | 9,43,067 |
| Low price | 411 ₹ | High price | 747 ₹ | PEG Ratio | -3.78 | Debt to equity | 0.03 |
| 52w Index | 63.4 % | Qtr Profit Var | 3,920 % | EPS | 20.4 ₹ | Industry PE | 32.5 |
📊 Core Financials
- Quarterly PAT rose from ₹92 Cr. to ₹121 Cr., showing strong sequential growth.
- ROCE at 10.3% and ROE at 8.26% → modest efficiency compared to peers.
- Debt-to-equity ratio of 0.03 → virtually debt-free.
- Cash flows supported by graphite electrode demand but cyclical in nature.
💹 Valuation Indicators
- P/E Ratio: 29.1 vs Industry PE of 32.5 → fairly valued.
- P/B Ratio: ~2.2x (₹624 / ₹287) → moderate valuation.
- PEG Ratio: -3.78 → negative, indicating weak growth visibility.
- Intrinsic Value: Current price near fair zone, supported by cyclical demand.
🏢 Business Model & Competitive Advantage
- Leading graphite electrode manufacturer with global presence.
- Strong brand recognition in industrial materials sector.
- Exposure to steel industry cycles limits earnings predictability.
📈 Technical & Entry Zone
- Current Price: ₹624, below 50 DMA (₹643) but above 200 DMA (₹589).
- RSI: 42.4 → approaching oversold zone.
- MACD: -9.14 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹580–₹600.
- Long-Term Holding: Suitable for cyclical investors with 3–5 year horizon.
✅ Positive
- Debt-light balance sheet.
- Strong sequential PAT growth.
- DII holdings increased by 0.44%, showing institutional support.
⚠️ Limitation
- Weak ROE and ROCE compared to peers.
- Negative PEG ratio indicates limited growth visibility.
📉 Company Negative News
- Decline in FII holdings (-0.17%).
- Stock corrected from 52-week high of ₹747.
📈 Company Positive News
- Quarterly PAT growth of 3,920% shows strong rebound.
- Dividend yield of 1.76% provides steady income.
🏭 Industry
- Graphite electrode industry tied to steel production cycles.
- Industry PE at 32.5 indicates moderate investor optimism.
🔎 Conclusion
GRAPHITE is a debt-light industrial materials company with strong sequential profit growth but modest efficiency metrics.
Valuations are fair, though growth visibility remains weak due to cyclical exposure.
Best accumulated around ₹580–₹600 for investors willing to ride commodity cycles over a 3–5 year horizon.