GRAPHITE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | GRAPHITE | Market Cap | 12,457 Cr. | Current Price | 638 ₹ | High / Low | 685 ₹ |
| Stock P/E | 41.2 | Book Value | 287 ₹ | Dividend Yield | 1.73 % | ROCE | 10.3 % |
| ROE | 8.26 % | Face Value | 2.00 ₹ | DMA 50 | 605 ₹ | DMA 200 | 564 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | 0.44 % | PAT Qtr | 92.0 Cr. | PAT Prev Qtr | 145 Cr. |
| RSI | 54.2 | MACD | 6.08 | Volume | 7,33,449 | Avg Vol 1Wk | 12,05,542 |
| Low price | 366 ₹ | High price | 685 ₹ | PEG Ratio | -5.36 | Debt to equity | 0.03 |
| 52w Index | 85.2 % | Qtr Profit Var | -49.4 % | EPS | 15.5 ₹ | Industry PE | 36.3 |
📊 Graphite India shows moderate fundamentals with low debt, decent book value, and a fair dividend yield. Technical indicators (RSI ~54 neutral, MACD positive, price above both 50 DMA and 200 DMA) suggest short-term bullish momentum. However, earnings volatility and declining profits limit confidence. It is a cautious candidate for swing trading with a balanced risk-reward setup.
💡 Optimal Entry Price: Around 620–630 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider booking profits near 670–680 ₹ resistance, or exit if price falls below 600 ₹.
Positive ✅
- Debt-to-equity ratio of 0.03 shows negligible leverage risk.
- Dividend yield of 1.73% provides moderate income stability.
- Book value of 287 ₹ offers asset backing.
- Price trading above both 50 DMA (605 ₹) and 200 DMA (564 ₹), showing technical strength.
- MACD positive (6.08) signals short-term bullish momentum.
Limitation ⚠️
- P/E of 41.2 higher than industry average (36.3), suggesting premium valuation.
- ROCE (10.3%) and ROE (8.26%) are modest compared to peers.
- Quarterly PAT declined from 145 Cr. to 92 Cr. (-49.4%), showing earnings pressure.
- PEG ratio of -5.36 indicates valuation concerns relative to growth.
- Trading volume (7.3 lakh) below 1-week average (12 lakh), suggesting weaker participation.
Company Negative News 📉
- Sharp decline in quarterly profits (-49.4%) raises concerns about earnings stability.
- Slight decline in FII holdings (-0.17%) shows reduced foreign investor confidence.
Company Positive News 📈
- Stable dividend payout supports investor confidence.
- DII holdings increased (+0.44%), reflecting domestic institutional support.
Industry 🌐
- Industry P/E at 36.3 highlights sector trades at a premium.
- Graphite electrode industry benefits from steel demand cycles, though cyclical risks remain.
Conclusion 📝
Graphite India is a cautious swing trade candidate with strong technical positioning but weak earnings momentum. Entry near 620–630 ₹ offers a favorable setup. Exit around 670–680 ₹ or below 600 ₹ if momentum weakens. Suitable for short-term trades, but investors should remain cautious due to earnings volatility and premium valuation.