GRASIM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | GRASIM | Market Cap | 1,93,122 Cr. | Current Price | 2,838 ₹ | High / Low | 2,979 ₹ |
| Stock P/E | 562 | Book Value | 808 ₹ | Dividend Yield | 0.35 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,799 ₹ | DMA 200 | 2,748 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.28 % | PAT Qtr | 805 Cr. | PAT Prev Qtr | -118 Cr. |
| RSI | 55.4 | MACD | 1.72 | Volume | 5,72,641 | Avg Vol 1Wk | 7,97,676 |
| Low price | 2,301 ₹ | High price | 2,979 ₹ | PEG Ratio | -9.31 | Debt to equity | 0.24 |
| 52w Index | 79.2 % | Qtr Profit Var | 6.31 % | EPS | 3.29 ₹ | Industry PE | 30.8 |
📊 Grasim shows mixed fundamentals with a very high P/E, weak ROE/ROCE, and low dividend yield. Technical indicators (RSI ~55 neutral, MACD slightly positive, price above both 50 DMA and 200 DMA) suggest mild bullish momentum. While the company posted a profit recovery this quarter, overall valuations and efficiency metrics limit its attractiveness for swing trading. It is a cautious candidate for short-term trades.
💡 Optimal Entry Price: Around 2,780–2,820 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider booking profits near 2,950–2,970 ₹ resistance, or exit if price falls below 2,740 ₹ (200 DMA support).
Positive ✅
- Large market cap (1,93,122 Cr.) ensures liquidity and stability.
- Book value of 808 ₹ provides strong asset backing.
- Quarterly PAT recovery to 805 Cr. from a loss of -118 Cr. shows operational improvement.
- Price trading above both 50 DMA (2,799 ₹) and 200 DMA (2,748 ₹), indicating technical support.
- Debt-to-equity ratio of 0.24 shows manageable leverage.
Limitation ⚠️
- Extremely high P/E of 562 vs industry average of 30.8 indicates severe overvaluation.
- ROCE (1.52%) and ROE (0.35%) are very weak compared to peers.
- Dividend yield of 0.35% is negligible.
- PEG ratio of -9.31 suggests poor valuation relative to growth.
- Trading volume below 1-week average, showing reduced participation.
Company Negative News 📉
- No major external negative news reported, but weak efficiency metrics and high valuation are concerns.
Company Positive News 📈
- Quarterly profit recovery (+6.31% variation) after previous losses.
- Slight increase in FII holdings (+0.12%) shows foreign investor confidence.
Industry 🌐
- Industry P/E at 30.8 highlights sector trades at a premium compared to broader markets.
- Cement and diversified industrial sector benefits from infrastructure demand and long-term growth drivers.
Conclusion 📝
Grasim is a cautious swing trade candidate with strong asset backing and profit recovery, but extremely high valuations and weak efficiency metrics limit upside. Entry near 2,780–2,820 ₹ offers a safer risk-reward setup. Exit around 2,950–2,970 ₹ or below 2,740 ₹ if momentum weakens. Suitable only for short-term trades with strict risk management.