GRAVITA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.4

📊 GRAVITA shows strong fundamentals with robust profitability, low debt, and positive technical indicators. The stock is trading above both its 50 DMA and 200 DMA, with improving earnings momentum. It is a good candidate for swing trading with favorable risk-reward potential.

✅ Optimal Entry Price: 1,780–1,800 ₹ (near DMA support)

📈 Exit Strategy: If already holding, consider exiting near 1,950–2,000 ₹ resistance zone or if RSI crosses 65–70.

Positive

• 💡 Strong ROCE (21.4%) and ROE (18.5%) highlight efficient capital utilization.
• 📈 PAT growth from 68 Cr. to 87.2 Cr. shows earnings momentum.
• 🛡️ Very low Debt-to-Equity (0.11) ensures financial stability.
• 📊 Trading above DMA 50 (1,755 ₹) and DMA 200 (1,761 ₹), indicating bullish trend support.
• 💰 EPS (35.6 ₹) supports valuation strength.

Limitation

• ⚠️ P/E (51.0) is significantly higher than industry PE (20.0), suggesting premium valuation.
• 📉 Volume (1.27 lakh) is lower than 1-week average (1.80 lakh), showing reduced trader participation.
• 🔎 52-week index (39.9%) indicates underperformance compared to broader market.

Company Negative News

• 📉 Decline in FII holding (-0.44%) reflects reduced foreign investor confidence.

Company Positive News

• 🌍 Increase in DII holding (+0.46%) signals domestic institutional support.
• 📈 Quarterly profit variation (72.4%) highlights strong earnings growth.

Industry

• 🏭 Industry PE (20.0) is much lower than GRAVITA’s PE (51.0), showing premium valuation.
• 📊 Sector outlook remains positive with demand tied to recycling and industrial metals.

Conclusion

🔑 GRAVITA is a strong swing trade candidate with improving profits, bullish technicals, and low debt. Entry near 1,780–1,800 ₹ offers a favorable setup. Exit near 1,950–2,000 ₹ is advisable unless momentum indicators strengthen further. Short-term outlook is positive, though valuation premium and lower trading volumes warrant some caution.

I can also prepare a side-by-side HTML comparison of GRAVITA with GRASIM so you can evaluate which one offers stronger swing trade potential.