GNFC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
📊 Swing Trade Rating: 4.0
| Stock Code | GNFC | Market Cap | 6,999 Cr. | Current Price | 476 ₹ | High / Low | 585 ₹ |
| Stock P/E | 11.2 | Book Value | 580 ₹ | Dividend Yield | 3.78 % | ROCE | 9.70 % |
| ROE | 7.03 % | Face Value | 10.0 ₹ | DMA 50 | 492 ₹ | DMA 200 | 517 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 0.43 % | PAT Qtr | 177 Cr. | PAT Prev Qtr | 78.0 Cr. |
| RSI | 40.3 | MACD | -4.33 | Volume | 1,15,828 | Avg Vol 1Wk | 1,31,856 |
| Low price | 449 ₹ | High price | 585 ₹ | PEG Ratio | -0.37 | Debt to equity | 0.00 |
| 52w Index | 20.0 % | Qtr Profit Var | 73.5 % | EPS | 42.4 ₹ | Industry PE | 18.8 |
Analysis: Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) is trading at ₹476, below its 50 DMA (₹492) and 200 DMA (₹517), showing short-term weakness. RSI at 40.3 suggests the stock is approaching oversold territory, while MACD at -4.33 indicates bearish momentum. Fundamentals are solid with a low P/E of 11.2 compared to industry average of 18.8, strong dividend yield (3.78%), and zero debt. Quarterly PAT growth (+73.5%) and EPS of ₹42.4 highlight earnings strength, making GNFC a good candidate for swing trading once momentum stabilizes.
Optimal Entry Price: Around ₹465–₹475, near support levels.
Exit Strategy: If already holding, consider exiting near ₹510–₹520 resistance zone, or trail profits up to ₹540 if momentum strengthens.
✅ Positive
- 📈 Low P/E (11.2) compared to industry average (18.8), indicating undervaluation.
- 💰 Dividend yield of 3.78% provides attractive investor returns.
- 📊 Quarterly PAT growth from ₹78 Cr. to ₹177 Cr. (+73.5%).
- 💳 Debt-free balance sheet reduces financial risk.
⚠️ Limitation
- 📉 Trading below DMA 50 and DMA 200, indicating bearish trend.
- 🔄 Weak ROCE (9.70%) and ROE (7.03%) compared to peers.
- 📉 Volume lower than average, suggesting reduced market participation.
🚨 Company Negative News
- 📉 Bearish technical indicators (RSI & MACD) suggest short-term weakness.
- ⚠️ PEG ratio (-0.37) indicates weak earnings growth relative to valuation.
🌟 Company Positive News
- 📊 DII holding increased (+0.43%), showing domestic investor confidence.
- 📈 FII holding increased (+0.05%), reflecting foreign investor support.
- 🏭 Strong quarterly earnings momentum supports valuation strength.
🏗️ Industry
- 🌾 Operates in fertilizers and chemicals sector, benefiting from agricultural demand.
- 📈 Industry PE of 18.8 suggests moderate valuation compared to GNFC’s lower P/E.
- 🌍 Sector growth supported by government policies but sensitive to raw material costs.
📝 Conclusion
GNFC is a good swing trade candidate. Entry near ₹465–₹475 offers a favorable risk-reward ratio, with exit near ₹510–₹520. Strong fundamentals, dividend yield, and zero debt support stability, but bearish technicals and modest capital efficiency require caution. Traders should use strict stop-loss levels around ₹450 to manage risk.
Would you like me to also prepare a peer comparison (e.g., Chambal Fertilizers, RCF, Deepak Fertilizers) so you can see how GNFC stacks up against competitors in the fertilizer and chemicals sector?