GRAVITA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | GRAVITA | Market Cap | 10,404 Cr. | Current Price | 1,407 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 34.6 | Book Value | 231 ₹ | Dividend Yield | 0.45 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,585 ₹ | DMA 200 | 1,695 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 31.0 | MACD | -56.9 | Volume | 1,95,955 | Avg Vol 1Wk | 3,22,921 |
| Low price | 1,380 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.51 | Debt to equity | 0.11 |
| 52w Index | 3.49 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 16.3 |
📊 Gravita India shows moderate swing trade potential. The RSI at 31.0 indicates oversold conditions, while MACD (-56.9) remains negative, suggesting weak momentum. Fundamentals are strong with ROCE at 21.4% and ROE at 18.5%, supported by a low debt-to-equity ratio (0.11). Valuation is slightly stretched with a P/E of 34.6 compared to industry average (16.3), but PEG ratio of 0.51 suggests growth is reasonably priced. The optimal entry price would be near support around 1,380–1,400 ₹. If already holding, consider exiting near resistance around 1,580–1,600 ₹ unless momentum improves.
✅ Positive
- Strong ROCE (21.4%) and ROE (18.5%) highlight efficiency
- Low debt-to-equity ratio (0.11) ensures financial stability
- EPS of 40.8 ₹ supports earnings visibility
- FII holdings increased by 1.10%, showing foreign investor confidence
- PEG ratio of 0.51 indicates growth is reasonably priced
⚠️ Limitation
- P/E ratio (34.6) much higher than industry average (16.3)
- Weak technical indicators: RSI oversold, MACD negative
- Price trading below both 50 DMA (1,585 ₹) and 200 DMA (1,695 ₹)
- Quarterly profit decline (PAT down from 87.2 Cr. to 72.2 Cr.)
📉 Company Negative News
- Quarterly profit variation shows decline
- DII holdings decreased (-0.16%), reflecting reduced domestic investor confidence
📈 Company Positive News
- Quarterly profit growth of 111% year-on-year
- FII holdings increased significantly (+1.10%)
- Strong 52-week performance (3.49%) despite recent weakness
🏭 Industry
- Industry P/E at 16.3, much lower than Gravita’s 34.6, suggesting overvaluation
- Recycling and metals sector remains cyclical but benefits from sustainability demand
🔎 Conclusion
Gravita India is financially stable with strong efficiency ratios and foreign investor support, but technical weakness and valuation concerns limit swing trade attractiveness. Entry around 1,380–1,400 ₹ is optimal, with exit near 1,580–1,600 ₹ if resistance holds. Long-term investors may continue holding due to sector resilience, while swing traders should remain cautious until momentum indicators improve.