GMDCLTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | GMDCLTD | Market Cap | 19,521 Cr. | Current Price | 614 ₹ | High / Low | 651 ₹ |
| Stock P/E | 29.6 | Book Value | 210 ₹ | Dividend Yield | 1.64 % | ROCE | 14.2 % |
| ROE | 11.0 % | Face Value | 2.00 ₹ | DMA 50 | 560 ₹ | DMA 200 | 492 ₹ |
| Chg in FII Hold | -1.02 % | Chg in DII Hold | 0.10 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 164 Cr. |
| RSI | 61.3 | MACD | 8.93 | Volume | 66,58,226 | Avg Vol 1Wk | 77,29,776 |
| Low price | 226 ₹ | High price | 651 ₹ | PEG Ratio | 1.94 | Debt to equity | 0.04 |
| 52w Index | 91.3 % | Qtr Profit Var | -6.91 % | EPS | 31.7 ₹ | Industry PE | 20.4 |
📊 GMDC Ltd shows strong fundamentals with healthy ROCE and ROE, low debt, and a fair dividend yield. Technical indicators (RSI at 61.3, MACD positive, price above both 50 DMA and 200 DMA) suggest bullish momentum. Despite a slight decline in quarterly profits, the overall setup makes it a good candidate for swing trading with favorable risk-reward potential.
💡 Optimal Entry Price: Around 600–610 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 640–650 ₹ resistance, or exit if price falls below 590 ₹.
Positive ✅
- ROCE (14.2%) and ROE (11.0%) indicate decent efficiency.
- Debt-to-equity ratio of 0.04 shows negligible leverage risk.
- Dividend yield of 1.64% provides moderate income stability.
- EPS of 31.7 ₹ supports profitability visibility.
- Price trading above both 50 DMA (560 ₹) and 200 DMA (492 ₹), showing strong technical support.
- MACD positive (8.93) signals bullish undertone.
Limitation ⚠️
- P/E of 29.6 higher than industry average (20.4), suggesting premium valuation.
- Quarterly PAT declined from 164 Cr. to 120 Cr. (-6.91%), showing earnings pressure.
- FII holdings declined (-1.02%), reflecting reduced foreign investor confidence.
- Trading volume (66.6 lakh) below 1-week average (77.2 lakh), suggesting weaker participation.
- PEG ratio of 1.94 indicates valuation concerns relative to growth.
Company Negative News 📉
- Decline in quarterly profits (-6.91%) raises concerns about short-term earnings momentum.
- Reduced FII interest adds pressure on sentiment.
Company Positive News 📈
- Strong technical positioning above key moving averages.
- DII holdings increased (+0.10%), showing domestic institutional support.
Industry 🌐
- Industry P/E at 20.4 highlights sector trades at fair valuation compared to GMDC’s premium.
- Mining and minerals sector benefits from infrastructure demand and commodity cycles.
Conclusion 📝
GMDC Ltd is a good candidate for swing trading with strong technical support and low debt, though valuations are slightly high and profits have declined. Entry near 600–610 ₹ offers favorable risk-reward. Exit around 640–650 ₹ or below 590 ₹ if momentum weakens. Suitable for short-term trades with close monitoring of earnings and institutional flows.