GRASIM - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.6
| Stock Code | GRASIM | Market Cap | 1,91,512 Cr. | Current Price | 2,814 ₹ | High / Low | 2,979 ₹ |
| Stock P/E | 557 | Book Value | 808 ₹ | Dividend Yield | 0.36 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,783 ₹ | DMA 200 | 2,726 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | -0.64 % | PAT Qtr | 805 Cr. | PAT Prev Qtr | -118 Cr. |
| RSI | 56.7 | MACD | 7.87 | Volume | 2,61,897 | Avg Vol 1Wk | 4,94,081 |
| Low price | 2,276 ₹ | High price | 2,979 ₹ | PEG Ratio | -9.23 | Debt to equity | 0.24 |
| 52w Index | 76.6 % | Qtr Profit Var | 6.31 % | EPS | 3.29 ₹ | Industry PE | 33.2 |
📊 GRASIM shows a sharp profit recovery and moderate technical strength, but its extremely high valuation and weak efficiency ratios limit swing trade potential. Momentum indicators are neutral-to-positive, making it a cautious candidate for swing trading.
✅ Optimal Entry Price: 2,750–2,780 ₹ (near DMA 50 and DMA 200 support)
📈 Exit Strategy: If already holding, consider exiting near 2,950–2,980 ₹ resistance zone or if RSI crosses 65.
Positive
- 💡 PAT recovery from -118 Cr. to 805 Cr. shows strong turnaround in profitability.
- 📈 RSI (56.7) and positive MACD (7.87) indicate improving momentum.
- 🌍 Increase in FII holding (+0.58%) signals foreign investor confidence.
- 🛡️ Debt-to-Equity (0.24) remains low, ensuring financial stability.
Limitation
- ⚠️ Extremely high P/E (557) compared to industry PE (33.2) suggests severe overvaluation.
- 📉 ROCE (1.52%) and ROE (0.35%) are very weak, showing poor capital efficiency.
- 🔎 PEG ratio (-9.23) highlights poor valuation relative to growth.
- 📉 Volume (2.6 lakh) is lower than 1-week average (4.9 lakh), showing reduced trader participation.
Company Negative News
- 📉 Decline in DII holding (-0.64%) reflects reduced domestic institutional confidence.
- 📉 Quarterly profit variation (6.31%) shows limited growth despite recovery.
Company Positive News
- 🌍 Increase in FII holding (+0.58%) reflects foreign investor interest.
- 📈 PAT turnaround indicates operational recovery and improved performance.
Industry
- 🏭 Industry PE (33.2) is far lower than GRASIM’s P/E (557), showing extreme premium valuation.
- 📊 Sector outlook remains cyclical, tied to industrial demand and infrastructure growth.
Conclusion
🔑 GRASIM is a cautious swing trade candidate with strong profit recovery but weak fundamentals and extreme valuation. Entry near 2,750–2,780 ₹ offers limited upside potential. Exit near 2,950–2,980 ₹ is advisable if holding, as momentum indicators are improving but valuation risks remain high.
I can also prepare a side-by-side HTML comparison of GRASIM with GRAPHITE so you can evaluate which one offers better swing trade potential.
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