GMDCLTD - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | GMDCLTD | Market Cap | 19,692 Cr. | Current Price | 619 ₹ | High / Low | 772 ₹ |
| Stock P/E | 33.2 | Book Value | 222 ₹ | Dividend Yield | 1.63 % | ROCE | 11.3 % |
| ROE | 8.82 % | Face Value | 2.00 ₹ | DMA 50 | 639 ₹ | DMA 200 | 572 ₹ |
| Chg in FII Hold | 1.46 % | Chg in DII Hold | 0.08 % | PAT Qtr | 197 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 44.0 | MACD | -13.5 | Volume | 11,82,767 | Avg Vol 1Wk | 16,94,023 |
| Low price | 375 ₹ | High price | 772 ₹ | PEG Ratio | -1.58 | Debt to equity | 0.04 |
| 52w Index | 61.5 % | Qtr Profit Var | -12.7 % | EPS | 31.2 ₹ | Industry PE | 19.6 |
GMDC Ltd (GMDCLTD) shows moderate fundamentals with ROCE (11.3%) and ROE (8.82%), supported by a low debt-to-equity ratio (0.04). The current price (₹619) is below the 50 DMA (₹639) but above the 200 DMA (₹572), reflecting short-term weakness but medium-term support. RSI at 44.0 and MACD at -13.5 confirm bearish momentum. Volume is lower than the weekly average, showing reduced participation. Valuation is stretched with a P/E of 33.2 compared to industry average (19.6), and a negative PEG ratio (-1.58) signals poor growth alignment. Despite strong EPS (₹31.2) and institutional inflows (FII +1.46%, DII +0.08%), declining quarterly profits (-12.7%) make this a cautious swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹600–₹610 (near support zone above 200 DMA) is favorable for swing trading.
📈 Exit Strategy
If already holding, consider exiting near ₹640–₹660 (resistance zone close to 50 DMA). A strict stop-loss below ₹590 is advisable to manage risk.
✅ Positive
- 📌 EPS of ₹31.2 supports earnings strength.
- 📌 ROCE (11.3%) and ROE (8.82%) show moderate efficiency.
- 📌 Debt-to-equity ratio of 0.04 ensures financial stability.
- 📌 FII holdings increased (+1.46%), showing foreign investor confidence.
- 📌 DII holdings increased slightly (+0.08%).
⚠️ Limitation
- 📌 Current price below 50 DMA indicates short-term weakness.
- 📌 RSI and MACD confirm bearish momentum.
- 📌 Negative PEG ratio (-1.58) highlights poor valuation relative to growth.
- 📌 Quarterly PAT declined (₹197 Cr. vs ₹122 Cr. previously).
- 📌 Dividend yield is modest (1.63%).
📰 Company Negative News
- 📌 Decline in quarterly profits (-12.7%) raises caution.
🌟 Company Positive News
- 📌 Institutional investors increased holdings, showing confidence.
- 📌 EPS remains strong despite profit decline.
🏭 Industry
- 📌 Industry P/E at 19.6 is lower than GMDC’s 33.2, suggesting relative overvaluation.
- 📌 Mining sector outlook remains cyclical but supported by commodity demand.
🔎 Conclusion
GMDC Ltd is fundamentally moderate but technically weak for swing trading. Entry near ₹600–₹610 offers limited upside, with profit booking advisable near ₹640–₹660. A strict stop-loss below ₹590 is essential to manage risk due to declining profits and bearish momentum.
Would you like me to extend this with a peer benchmarking comparison or a sector overlay analysis to refine the swing trade outlook?