GRANULES - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.3

📊 GRANULES shows strong earnings momentum and favorable technical indicators, making it a good candidate for swing trading. The stock is trading above both its 50 DMA and 200 DMA, with improving profitability and foreign investor interest. Short-term momentum looks positive.

✅ Optimal Entry Price: 570–580 ₹ (near current price and DMA support)

📈 Exit Strategy: If already holding, consider exiting near 610–620 ₹ resistance zone or if RSI crosses 70.

Positive

• 💡 PAT growth from 78.6 Cr. to 121 Cr. shows strong earnings momentum.
• 📈 Quarterly profit variation (191%) highlights sharp improvement in performance.
• 🌍 Increase in FII holding (+0.85%) signals foreign investor confidence.
• 📊 Trading above DMA 50 (555 ₹) and DMA 200 (528 ₹), indicating bullish trend support.

Limitation

• ⚠️ ROCE (10.9%) and ROE (9.14%) are relatively modest compared to peers.
• 📉 Volume (6.7 lakh) is lower than 1-week average (9.3 lakh), showing reduced trader participation.
• 🔎 PEG ratio (-4.55) suggests valuation concerns relative to growth.
• 📉 Dividend Yield (0.26%) is low, offering limited income support.

Company Negative News

• 📉 Decline in DII holding (-5.61%) reflects reduced domestic institutional confidence.

Company Positive News

• 🌍 Increase in FII holding (+0.85%) shows foreign investor interest.
• 💰 Strong EPS (15.4 ₹) supports valuation strength.

Industry

• 🏭 Industry PE (30.6) is lower than GRANULES’ PE (39.1), suggesting premium valuation.
• 📊 Pharma sector outlook remains positive with consistent demand and export opportunities.

Conclusion

🔑 GRANULES is a strong swing trade candidate with improving profits, bullish technicals, and foreign investor support. Entry near 570–580 ₹ offers a favorable setup. Exit near 610–620 ₹ is advisable unless momentum indicators strengthen further. Short-term outlook is positive, though valuation and modest ROCE/ROE warrant some caution.

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