GNFC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.1

📊 GNFC shows strong fundamentals with attractive valuation, high dividend yield, and zero debt. The company has demonstrated sharp profit growth, but short-term technical indicators remain weak. It is a moderately good candidate for swing trading with cautious entry near support levels.

✅ Optimal Entry Price: 470–485 ₹ (close to recent support and near current price)

📈 Exit Strategy: If already holding, consider exiting near 560–580 ₹ resistance zone or if RSI crosses 60.

Positive

• 💡 Attractive P/E (11.5) compared to industry PE (20.0), suggesting undervaluation.
• 💰 Strong Dividend Yield (3.68%) provides steady shareholder returns.
• 🛡️ Debt-to-Equity (0.00) ensures excellent financial stability.
• 📈 PAT growth from 78 Cr. to 177 Cr. shows sharp earnings improvement.
• 📊 EPS (42.4 ₹) supports valuation strength.

Limitation

• ⚠️ RSI (40.7) and negative MACD (-2.27) indicate weak momentum.
• 📉 Stock trading below DMA 50 (499 ₹) and DMA 200 (523 ₹) signals bearish trend.
• 🔎 ROCE (9.70%) and ROE (7.03%) are modest compared to peers.
• 📉 Volume (1.18 lakh) is lower than 1-week average (1.46 lakh), showing reduced trader participation.

Company Negative News

• 📉 Decline in FII holding (-0.59%) reflects reduced foreign investor confidence.

Company Positive News

• 🌍 Increase in DII holding (+0.20%) signals domestic institutional support.
• 📈 Quarterly profit variation (73.5%) highlights strong earnings momentum.

Industry

• 🏭 Industry PE (20.0) is higher than GNFC’s PE (11.5), suggesting undervaluation.
• 📊 Chemicals sector outlook remains stable with cyclical demand patterns.

Conclusion

🔑 GNFC is a fundamentally strong swing trade candidate with undervaluation, high dividend yield, and zero debt. Entry near 470–485 ₹ offers a favorable setup. Exit near 560–580 ₹ is advisable if holding, unless momentum indicators improve significantly. Short-term outlook is cautious, but long-term fundamentals remain supportive.

I can also prepare a side-by-side HTML comparison of GNFC with GMDCLTD so you can evaluate which one offers better swing trade potential.