GPIL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | GPIL | Market Cap | 17,492 Cr. | Current Price | 260 ₹ | High / Low | 290 ₹ |
| Stock P/E | 22.2 | Book Value | 75.4 ₹ | Dividend Yield | 0.38 % | ROCE | 23.4 % |
| ROE | 17.1 % | Face Value | 1.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | -0.73 % | Chg in DII Hold | 0.10 % | PAT Qtr | 248 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 54.8 | MACD | -0.65 | Volume | 22,19,654 | Avg Vol 1Wk | 22,26,636 |
| Low price | 146 ₹ | High price | 290 ₹ | PEG Ratio | -1.43 | Debt to equity | 0.03 |
| 52w Index | 79.5 % | Qtr Profit Var | 60.7 % | EPS | 11.8 ₹ | Industry PE | 19.5 |
📊 GPIL shows strong fundamentals with healthy ROCE and ROE, low debt, and robust profit growth. Technical indicators (RSI ~55, price above both 50 DMA and 200 DMA) suggest moderate bullish momentum, though MACD is slightly negative. It is a good candidate for swing trading with favorable risk-reward potential.
💡 Optimal Entry Price: Around 250–255 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider booking profits near 280–285 ₹ resistance, or exit if price falls below 232 ₹ (200 DMA support).
Positive ✅
- ROCE (23.4%) and ROE (17.1%) indicate strong efficiency.
- Debt-to-equity ratio of 0.03 shows negligible leverage risk.
- Quarterly PAT growth from 200 Cr. to 248 Cr. (+60.7%) reflects strong earnings momentum.
- EPS of 11.8 ₹ supports profitability visibility.
- Price trading above both 50 DMA (252 ₹) and 200 DMA (232 ₹), showing bullish trend support.
Limitation ⚠️
- P/E of 22.2 slightly above industry average (19.5), indicating premium valuation.
- Dividend yield of 0.38% is low, limiting passive income potential.
- MACD slightly negative (-0.65), signaling weak short-term momentum.
- FII holdings declined (-0.73%), showing reduced foreign investor confidence.
- PEG ratio of -1.43 suggests valuation concerns relative to growth.
Company Negative News 📉
- No major negative news reported, but declining FII interest is a concern.
Company Positive News 📈
- Strong quarterly profit growth (+60.7%).
- Improved domestic institutional support (DII buying).
Industry 🌐
- Industry P/E at 19.5 highlights sector trades at fair valuation.
- Steel and mining sector benefits from infrastructure demand and commodity upcycle.
Conclusion 📝
GPIL is a fundamentally strong company with robust earnings growth and low debt, making it suitable for swing trading. Entry near 250–255 ₹ offers favorable risk-reward. Exit around 280–285 ₹ or below 232 ₹ if momentum weakens. While valuations are slightly above industry average, strong profitability and sector tailwinds support short- to medium-term trading opportunities.