GMDCLTD - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | GMDCLTD | Market Cap | 23,142 Cr. | Current Price | 728 ₹ | High / Low | 772 ₹ |
| Stock P/E | 35.9 | Book Value | 210 ₹ | Dividend Yield | 1.39 % | ROCE | 14.2 % |
| ROE | 11.0 % | Face Value | 2.00 ₹ | DMA 50 | 626 ₹ | DMA 200 | 543 ₹ |
| Chg in FII Hold | 1.46 % | Chg in DII Hold | 0.08 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 66.6 | MACD | 38.6 | Volume | 28,13,801 | Avg Vol 1Wk | 77,07,951 |
| Low price | 289 ₹ | High price | 772 ₹ | PEG Ratio | 2.35 | Debt to equity | 0.04 |
| 52w Index | 90.8 % | Qtr Profit Var | -9.12 % | EPS | 31.3 ₹ | Industry PE | 20.1 |
GMDCLTD shows strong momentum and improving fundamentals, making it a good candidate for swing trading. The stock trades at a P/E of 35.9, higher than the industry average of 20.1, but efficiency metrics like ROCE (14.2%) and ROE (11.0%) remain decent. Technical indicators (RSI 66.6, MACD 38.6) suggest bullish momentum. The optimal entry price would be near the 50 DMA level of ₹620–640. If already holding, consider exiting around ₹760–770, close to recent highs and resistance levels.
✅ Positive
- Strong 52-week index (90.8%) reflects excellent price performance.
- EPS of ₹31.3 supports earnings stability.
- Quarterly PAT growth from ₹120 Cr. to ₹135 Cr. shows resilience.
- FII holdings increased (+1.46%), showing strong foreign investor confidence.
- Low debt-to-equity ratio (0.04) ensures financial safety.
⚠️ Limitation
- P/E ratio (35.9) is significantly higher than industry average (20.1).
- Quarterly profit variation (-9.12%) indicates earnings volatility.
- Dividend yield of 1.39% is moderate, not highly attractive.
- Trading volume below 1-week average, reducing short-term liquidity strength.
📉 Company Negative News
- Quarterly profit variation (-9.12%) raises concerns about earnings consistency.
- DII holdings decreased (-0.08%), showing reduced domestic investor confidence.
📈 Company Positive News
- Foreign institutional investors increased holdings (+1.46%).
- Strong long-term price momentum reflected in 52-week performance.
- EPS of ₹31.3 highlights earnings strength.
🏭 Industry
- Industry P/E is 20.1, much lower than GMDCLTD’s 35.9, suggesting relative overvaluation.
- Mining and minerals sector benefits from infrastructure demand but faces cyclical risks.
🔎 Conclusion
GMDCLTD is a fundamentally decent but relatively overvalued stock, supported by strong momentum. Entry near ₹620–640 offers a favorable setup, while profit booking should be considered around ₹760–770. Traders should monitor earnings consistency and institutional activity for sustained momentum.