GRAPHITE - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.7
| Stock Code | GRAPHITE | Market Cap | 12,673 Cr. | Current Price | 649 ₹ | High / Low | 802 ₹ |
| Stock P/E | 46.6 | Book Value | 288 ₹ | Dividend Yield | 1.08 % | ROCE | 6.49 % |
| ROE | 4.85 % | Face Value | 2.00 ₹ | DMA 50 | 691 ₹ | DMA 200 | 636 ₹ |
| Chg in FII Hold | 0.27 % | Chg in DII Hold | 0.47 % | PAT Qtr | -83.7 Cr. | PAT Prev Qtr | 121 Cr. |
| RSI | 38.2 | MACD | -19.9 | Volume | 5,28,227 | Avg Vol 1Wk | 7,48,613 |
| Low price | 506 ₹ | High price | 802 ₹ | PEG Ratio | -5.74 | Debt to equity | 0.05 |
| 52w Index | 48.3 % | Qtr Profit Var | -235 % | EPS | 13.5 ₹ | Industry PE | 36.3 |
Graphite India (GRAPHITE) shows weak fundamentals with low ROCE (6.49%) and ROE (4.85%), alongside a negative PEG ratio (-5.74) indicating poor valuation relative to growth. The company reported a sharp earnings decline (₹121 Cr. → -₹83.7 Cr.), highlighting instability. The current price (₹649) is below the 50 DMA (₹691) but above the 200 DMA (₹636), reflecting short-term weakness with medium-term support. RSI at 38.2 suggests oversold conditions, while MACD at -19.9 confirms bearish momentum. Despite modest institutional inflows (FII +0.27%, DII +0.47%), fundamentals remain weak, making this a risky swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹630–₹640 (near 200 DMA support) is favorable only for high-risk traders.
📈 Exit Strategy
If already holding, consider exiting near ₹680–₹700 (resistance zone close to 50 DMA). A strict stop-loss below ₹620 is advisable.
✅ Positive
- 📌 Book value of ₹288 provides valuation support.
- 📌 Dividend yield of 1.08% offers modest income.
- 📌 Institutional inflows (FII +0.27%, DII +0.47%) show some investor confidence.
- 📌 Debt-to-equity ratio of 0.05 indicates low leverage.
⚠️ Limitation
- 📌 Weak ROCE (6.49%) and ROE (4.85%) reflect poor efficiency.
- 📌 Negative PEG ratio (-5.74) highlights poor valuation relative to growth.
- 📌 Quarterly PAT dropped sharply (₹121 Cr. → -₹83.7 Cr.).
- 📌 RSI and MACD confirm bearish momentum.
📰 Company Negative News
- 📌 Sharp decline in quarterly profits raises concerns about earnings stability.
🌟 Company Positive News
- 📌 Institutional investors marginally increasing stake.
- 📌 Stock trading near 200 DMA support zone, offering technical cushion.
🏭 Industry
- 📌 Industry P/E at 36.3 is lower than GRAPHITE’s 46.6, suggesting relative overvaluation.
- 📌 Metals and industrial sector outlook remains cyclical with demand tied to global trends.
🔎 Conclusion
Graphite India is fundamentally weak and technically bearish, making it a risky swing trade candidate. Entry near ₹630–₹640 may be considered only for short-term recovery plays, with profit booking advisable near ₹680–₹700. A strict stop-loss below ₹620 is essential due to earnings weakness and poor efficiency metrics.
Would you like me to extend this with a peer benchmarking analysis or a risk-reward ratio calculation to refine this swing trade setup?