GRASIM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | GRASIM | Market Cap | 1,77,457 Cr. | Current Price | 2,608 ₹ | High / Low | 2,980 ₹ |
| Stock P/E | 460 | Book Value | 808 ₹ | Dividend Yield | 0.38 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,778 ₹ | DMA 200 | 2,760 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.28 % | PAT Qtr | -127 Cr. | PAT Prev Qtr | 805 Cr. |
| RSI | 38.6 | MACD | -51.2 | Volume | 13,06,219 | Avg Vol 1Wk | 11,99,758 |
| Low price | 2,448 ₹ | High price | 2,980 ₹ | PEG Ratio | -7.62 | Debt to equity | 0.24 |
| 52w Index | 30.0 % | Qtr Profit Var | 24.8 % | EPS | 3.29 ₹ | Industry PE | 27.0 |
📊 Grasim Industries shows weak swing trade potential in the short term. The RSI at 38.6 indicates oversold conditions, while MACD (-51.2) remains negative, suggesting continued weakness. Fundamentals are poor with extremely high P/E of 460 compared to industry average (27.0), very low ROCE (1.52%) and ROE (0.35%), and a quarterly loss (PAT -127 Cr. vs. 805 Cr. previously). The optimal entry price would be near strong support around 2,450–2,500 ₹. If already holding, consider exiting near resistance around 2,750–2,780 ₹ unless momentum improves.
✅ Positive
- Large market cap (1,77,457 Cr.) provides stability
- Book value of 808 ₹ supports long-term valuation
- Dividend yield of 0.38% adds shareholder value
- FII holdings increased slightly (+0.12%)
⚠️ Limitation
- Extremely high P/E ratio (460) compared to industry average (27.0)
- Negative PEG ratio (-7.62) reflects growth concerns
- Weak technical indicators: RSI oversold, MACD negative
- Price trading below both 50 DMA (2,778 ₹) and 200 DMA (2,760 ₹)
📉 Company Negative News
- Quarterly profit turned into a loss (-127 Cr.)
- Sharp decline in profit variation (-24.8%)
- DII holdings decreased (-0.28%), showing reduced domestic investor confidence
📈 Company Positive News
- FII holdings increased slightly (+0.12%)
- Strong brand presence and diversified business portfolio
🏭 Industry
- Industry P/E at 27.0, much lower than Grasim’s 460, suggesting severe overvaluation
- Cement and diversified industrial sector remains cyclical with moderate growth prospects
🔎 Conclusion
Grasim Industries currently faces weak fundamentals and technical indicators, making it a poor candidate for swing trading. Entry around 2,450–2,500 ₹ is optimal for risk-tolerant traders, with exit near 2,750–2,780 ₹ if resistance holds. Long-term investors should remain cautious due to high valuation and recent losses, while swing traders may avoid until momentum indicators improve.