GRASIM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | GRASIM | Market Cap | 1,94,489 Cr. | Current Price | 2,856 ₹ | High / Low | 2,980 ₹ |
| Stock P/E | 504 | Book Value | 808 ₹ | Dividend Yield | 0.35 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,741 ₹ | DMA 200 | 2,747 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | -0.71 % | PAT Qtr | -127 Cr. | PAT Prev Qtr | 805 Cr. |
| RSI | 64.1 | MACD | 31.4 | Volume | 10,24,502 | Avg Vol 1Wk | 12,12,482 |
| Low price | 2,502 ₹ | High price | 2,980 ₹ | PEG Ratio | -8.35 | Debt to equity | 0.24 |
| 52w Index | 74.0 % | Qtr Profit Var | 24.8 % | EPS | 3.29 ₹ | Industry PE | 30.4 |
GRASIM shows strong price momentum but very weak fundamentals, making it a risky candidate for swing trading. The stock trades at an extremely high P/E of 504 compared to the industry average of 30.4, while efficiency metrics like ROCE (1.52%) and ROE (0.35%) are very poor. The company reported a quarterly loss (PAT -₹127 Cr. vs. ₹805 Cr. previous quarter), raising concerns. Technical indicators (RSI 64.1, MACD 31.4) suggest bullish momentum but nearing overbought territory. The optimal entry price would be near the 50 DMA level of ₹2,730–2,750. If already holding, consider exiting around ₹2,950–2,980, close to recent highs and resistance levels.
✅ Positive
- Strong 52-week index (74.0%) reflects strong price performance.
- Book value of ₹808 provides solid asset backing.
- FII holdings increased (+0.42%), showing some foreign investor confidence.
⚠️ Limitation
- Extremely high P/E ratio (504) compared to industry average (30.4).
- Weak ROCE (1.52%) and ROE (0.35%) indicate poor efficiency.
- PEG ratio (-8.35) signals valuation concerns relative to growth.
- Dividend yield is very low (0.35%), offering limited passive returns.
📉 Company Negative News
- Reported quarterly loss (PAT -₹127 Cr.), reversing prior profitability.
- Domestic institutional investors reduced holdings (-0.71%).
📈 Company Positive News
- Foreign institutional investors increased holdings (+0.42%).
- Stock price has shown resilience with strong 52-week performance.
🏭 Industry
- Industry P/E is 30.4, much lower than GRASIM’s 504, suggesting extreme overvaluation.
- Cement and diversified sector benefits from infrastructure demand but faces cyclical risks.
🔎 Conclusion
GRASIM is currently a weak swing trade candidate due to poor earnings, extreme valuation, and weak efficiency metrics. Entry near ₹2,730–2,750 may offer limited opportunity, but risk remains high. If already holding, consider exiting around ₹2,950–2,980 to protect gains. Traders should avoid aggressive positions until financial performance stabilizes.