GRASIM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.8
| Stock Code | GRASIM | Market Cap | 2,14,038 Cr. | Current Price | 3,145 ₹ | High / Low | 3,200 ₹ |
| Stock P/E | 482 | Book Value | 812 ₹ | Dividend Yield | 0.32 % | ROCE | 2.19 % |
| ROE | 0.81 % | Face Value | 2.00 ₹ | DMA 50 | 2,984 ₹ | DMA 200 | 2,833 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | -0.71 % | PAT Qtr | -81.7 Cr. | PAT Prev Qtr | -127 Cr. |
| RSI | 62.9 | MACD | 51.4 | Volume | 6,73,782 | Avg Vol 1Wk | 5,99,304 |
| Low price | 2,502 ₹ | High price | 3,200 ₹ | PEG Ratio | -12.0 | Debt to equity | 0.23 |
| 52w Index | 92.1 % | Qtr Profit Var | 53.0 % | EPS | 5.12 ₹ | Industry PE | 30.0 |
Grasim Industries (GRASIM) shows weak fundamentals with extremely high P/E (482) compared to industry average (30), low ROCE (2.19%) and ROE (0.81%), and a negative PEG ratio (-12.0) indicating unsustainable valuation. The company continues to report losses (₹-81.7 Cr. vs ₹-127 Cr. previously), though losses have narrowed. The current price (₹3,145) is above both the 50 DMA (₹2,984) and 200 DMA (₹2,833), reflecting bullish technical momentum. RSI at 62.9 suggests overbought conditions, while MACD at 51.4 confirms positive momentum. Despite strong trading volumes and FII inflows (+0.42%), fundamentals remain weak, making this a risky swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹3,000–₹3,050 (near 50 DMA support) is favorable only for high-risk traders.
📈 Exit Strategy
If already holding, consider exiting near ₹3,180–₹3,200 (resistance zone close to recent highs). A strict stop-loss below ₹2,950 is advisable.
✅ Positive
- 📌 Book value of ₹812 provides valuation cushion.
- 📌 Dividend yield of 0.32% offers some income.
- 📌 Narrowing losses compared to previous quarter.
- 📌 FII holdings increased (+0.42%), showing foreign investor confidence.
- 📌 Strong trading volumes above average (6,73,782 vs 5,99,304).
⚠️ Limitation
- 📌 Extremely high P/E (482) compared to industry average (30).
- 📌 Low ROCE (2.19%) and ROE (0.81%) reflect poor efficiency.
- 📌 Negative PEG ratio (-12.0) signals unsustainable valuation.
- 📌 Continued losses despite narrowing.
- 📌 DII holdings decreased (-0.71%), showing reduced domestic investor confidence.
📰 Company Negative News
- 📌 Continued losses despite narrowing from previous quarter.
- 📌 Decline in DII holdings (-0.71%).
🌟 Company Positive News
- 📌 Narrowing of losses compared to previous quarter (₹-127 Cr. → ₹-81.7 Cr.).
- 📌 Strong trading volumes indicate active investor interest.
🏭 Industry
- 📌 Industry P/E at 30 is far lower than GRASIM’s 482, showing extreme premium valuation.
- 📌 Diversified sector outlook remains stable, but GRASIM lags peers in profitability.
🔎 Conclusion
Grasim Industries is a weak swing trade candidate due to extreme overvaluation, poor efficiency, and continued losses. While narrowing losses and bullish technicals are positives, risks outweigh rewards. Entry near ₹3,000–₹3,050 may be considered cautiously, but exit around ₹3,180–₹3,200 is advisable for existing holders to limit exposure.
Would you like me to extend this with a sector overlay analysis or a peer benchmarking comparison to refine the swing trade outlook?