GNFC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

📈 Analysis: GNFC offers a cautious swing trade setup with strong valuation metrics but weak technical momentum. The current price of ₹496 is below both the 50 DMA (₹507) and 200 DMA (₹533), indicating a short-term downtrend. RSI at 44.0 and MACD at -0.23 suggest subdued momentum. However, the stock trades at a low P/E (13.3) compared to the industry average (23.4), and offers a solid dividend yield of 3.63%. ROCE (9.70%) and ROE (7.03%) are modest, and the company maintains excellent financial health with a debt-to-equity ratio of just 0.01. Institutional sentiment is mixed, with FII holdings declining and DII holdings slightly increasing.

🎯 Optimal Entry Price: ₹485–₹495 (near support and RSI zone)

🚪 Exit Strategy (if holding): Consider exiting near ₹520–₹530 (approaching 200 DMA) or if RSI crosses 60 with MACD turning positive.

✅ Positive

• 📉 Low P/E (13.3) vs industry — attractive valuation
• 💰 Dividend yield of 3.63% — strong income support
• 📊 EPS of ₹37.3 — solid earnings base
• 💸 Debt-to-equity ratio of 0.01 — excellent financial health
• 📈 DII holding increased (+0.20%) — domestic investor confidence

⚠️ Limitation

• 📉 Price below 50 & 200 DMA — short-term bearish trend
• 📉 RSI and MACD indicate weak momentum
• 📉 FII holding decreased (-0.59%) — foreign investor caution
• 📉 PAT dropped from ₹210 Cr. to ₹78 Cr. — earnings contraction
• 📉 PEG ratio of -0.44 — poor growth valuation

📰 Company Negative News

• Significant drop in quarterly profit and declining FII interest raise concerns about near-term performance

🌟 Company Positive News

• Strong dividend yield and low valuation metrics make GNFC attractive for value-focused swing traders

🏭 Industry

• Industry P/E is 23.4 — GNFC trades at a discount, offering valuation comfort
• Chemicals and fertilizers sector benefits from agricultural demand and industrial applications

🧾 Conclusion

GNFC is a fundamentally strong but technically weak swing trade candidate. Entry near support offers a tactical opportunity if momentum improves. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also help you compare GNFC’s setup with peers like Deepak Fertilisers or Chambal Fertilisers to refine your swing strategy.