GMDCLTD - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | GMDCLTD | Market Cap | 16,987 Cr. | Current Price | 534 ₹ | High / Low | 651 ₹ |
| Stock P/E | 26.3 | Book Value | 210 ₹ | Dividend Yield | 1.89 % | ROCE | 14.2 % |
| ROE | 11.0 % | Face Value | 2.00 ₹ | DMA 50 | 558 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | -1.02 % | Chg in DII Hold | 0.10 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 44.5 | MACD | -7.40 | Volume | 14,77,935 | Avg Vol 1Wk | 26,79,650 |
| Low price | 251 ₹ | High price | 651 ₹ | PEG Ratio | 1.72 | Debt to equity | 0.04 |
| 52w Index | 70.7 % | Qtr Profit Var | -9.12 % | EPS | 31.3 ₹ | Industry PE | 16.3 |
📊 GMDC Ltd shows moderate swing trade potential. The RSI at 44.5 is neutral, while MACD (-7.40) indicates weak momentum. Fundamentals are decent with ROCE at 14.2% and ROE at 11.0%, supported by a very low debt-to-equity ratio (0.04). Valuation is slightly stretched with a P/E of 26.3 compared to industry average (16.3), but PEG ratio of 1.72 suggests growth is reasonably priced. The optimal entry price would be near support around 525–535 ₹. If already holding, consider exiting near resistance around 555–565 ₹ unless momentum improves.
✅ Positive
- Strong ROCE (14.2%) and ROE (11.0%) highlight efficiency
- Debt-to-equity ratio of 0.04 shows excellent financial stability
- Dividend yield of 1.89% adds shareholder value
- EPS of 31.3 ₹ supports earnings visibility
- DII holdings increased slightly (+0.10%)
⚠️ Limitation
- P/E ratio (26.3) higher than industry average (16.3)
- Weak technical indicators: RSI neutral, MACD negative
- Price trading below 50 DMA (558 ₹), though above 200 DMA (510 ₹)
- Quarterly profit decline (PAT down from 120 Cr. to 135 Cr. with -9.12% variation)
📉 Company Negative News
- Quarterly profit variation shows decline (-9.12%)
- FII holdings decreased (-1.02%), reflecting reduced foreign investor confidence
📈 Company Positive News
- EPS of 31.3 ₹ reflects strong earnings base
- DII holdings increased (+0.10%), showing domestic support
- Strong 52-week performance (70.7%)
🏭 Industry
- Industry P/E at 16.3, lower than GMDC’s 26.3, suggesting mild overvaluation
- Mining and minerals sector remains cyclical but benefits from industrial demand
🔎 Conclusion
GMDC Ltd is financially stable with strong efficiency ratios and dividend support, but technical weakness and valuation concerns limit swing trade attractiveness. Entry around 525–535 ₹ is optimal, with exit near 555–565 ₹ if resistance holds. Long-term investors may continue holding due to sector resilience, while swing traders should remain cautious until momentum indicators improve.