GRAVITA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.2
| Stock Code | GRAVITA | Market Cap | 12,341 Cr. | Current Price | 1,671 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 41.0 | Book Value | 231 ₹ | Dividend Yield | 0.38 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,561 ₹ | DMA 200 | 1,655 ₹ |
| Chg in FII Hold | -1.81 % | Chg in DII Hold | 0.44 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 63.0 | MACD | 43.1 | Volume | 5,24,521 | Avg Vol 1Wk | 2,97,301 |
| Low price | 1,267 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.61 | Debt to equity | 0.11 |
| 52w Index | 44.8 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 20.1 |
GRAVITA shows strong fundamentals and momentum, making it a good candidate for swing trading. The stock trades at a P/E of 41.0, higher than the industry average of 20.1, but efficiency metrics like ROCE (21.4%) and ROE (18.5%) remain solid. Technical indicators (RSI 63.0, MACD 43.1) suggest bullish momentum. The optimal entry price would be near the 50 DMA level of ₹1,550–1,570. If already holding, consider exiting around ₹2,100–2,150, close to recent highs and resistance levels.
✅ Positive
- Strong ROCE (21.4%) and ROE (18.5%) indicate efficient capital use.
- EPS of ₹40.8 supports earnings stability.
- PEG ratio (0.61) suggests fair valuation relative to growth.
- Quarterly PAT of ₹72.2 Cr. shows resilience despite prior decline.
- DII holdings increased (+0.44%), showing domestic investor confidence.
- Strong 52-week index (44.8%) reflects solid price performance.
⚠️ Limitation
- P/E ratio (41.0) is significantly higher than industry average (20.1).
- Quarterly PAT declined compared to previous quarter (₹87.2 Cr. → ₹72.2 Cr.).
- Dividend yield is low (0.38%), offering limited passive returns.
- FII holdings decreased (-1.81%), showing reduced foreign investor confidence.
📉 Company Negative News
- Quarterly profit decline raises concerns about earnings consistency.
- Foreign institutional investors reduced holdings (-1.81%).
📈 Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Domestic institutional investors increased holdings (+0.44%).
- EPS of ₹40.8 highlights earnings strength.
🏭 Industry
- Industry P/E is 20.1, much lower than GRAVITA’s 41.0, suggesting relative overvaluation.
- Recycling and metals sector benefits from sustainability demand and commodity cycles.
🔎 Conclusion
GRAVITA is a fundamentally strong and momentum-driven stock, suitable for swing trading. Entry near ₹1,550–1,570 offers a favorable setup, while profit booking should be considered around ₹2,100–2,150. Traders should monitor institutional activity and quarterly earnings for sustained momentum.