GRAVITA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | GRAVITA | Market Cap | 12,258 Cr. | Current Price | 1,660 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 40.7 | Book Value | 231 ₹ | Dividend Yield | 0.38 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,687 ₹ | DMA 200 | 1,741 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 51.2 | MACD | -35.5 | Volume | 1,27,178 | Avg Vol 1Wk | 2,18,528 |
| Low price | 1,380 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.61 | Debt to equity | 0.11 |
| 52w Index | 35.5 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 20.4 |
📊 Gravita shows strong fundamentals with healthy ROCE and ROE, low debt, and robust earnings growth. Technical indicators (RSI ~51 neutral, MACD negative, price slightly below 50 & 200 DMA) suggest consolidation with potential upside. It is a good candidate for swing trading, though short-term momentum remains weak.
💡 Optimal Entry Price: Around 1,630–1,650 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 1,750–1,800 ₹ resistance, or exit if price falls below 1,600 ₹.
Positive ✅
- ROCE (21.4%) and ROE (18.5%) indicate strong efficiency.
- Debt-to-equity ratio of 0.11 shows low leverage risk.
- Quarterly profit variation (+111%) reflects strong earnings momentum.
- EPS of 40.8 ₹ supports profitability visibility.
- PEG ratio of 0.61 suggests fair valuation relative to growth.
- FII holdings increased (+1.10%), showing foreign investor confidence.
Limitation ⚠️
- P/E of 40.7 is significantly higher than industry average (20.4), indicating premium valuation.
- Dividend yield of 0.38% is low, limiting passive income potential.
- MACD negative (-35.5) signals weak short-term momentum.
- Price trading slightly below both 50 DMA (1,687 ₹) and 200 DMA (1,741 ₹), showing technical weakness.
- Trading volume (1.27 lakh) below 1-week average (2.18 lakh), suggesting reduced participation.
Company Negative News 📉
- No major external negative news reported, but declining quarterly PAT (87.2 Cr. to 72.2 Cr.) is a concern.
Company Positive News 📈
- Strong profit growth on a yearly basis (+111%).
- Increase in FII holdings reflects foreign investor confidence.
Industry 🌐
- Industry P/E at 20.4 highlights sector trades at fair valuation compared to Gravita’s premium.
- Recycling and metals sector benefits from sustainability demand and commodity cycles.
Conclusion 📝
Gravita is a fundamentally strong company with robust efficiency and earnings growth, making it suitable for swing trading. Entry near 1,630–1,650 ₹ offers favorable risk-reward. Exit around 1,750–1,800 ₹ or below 1,600 ₹ if momentum weakens. While valuations are high, strong fundamentals and investor confidence support short- to medium-term trading opportunities.