GRAVITA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | GRAVITA | Market Cap | 12,730 Cr. | Current Price | 1,726 ₹ | High / Low | 1,950 ₹ |
| Stock P/E | 42.9 | Book Value | 250 ₹ | Dividend Yield | 0.37 % | ROCE | 19.6 % |
| ROE | 17.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,625 ₹ | DMA 200 | 1,656 ₹ |
| Chg in FII Hold | -1.81 % | Chg in DII Hold | 0.44 % | PAT Qtr | 69.7 Cr. | PAT Prev Qtr | 72.2 Cr. |
| RSI | 63.1 | MACD | 7.56 | Volume | 3,28,028 | Avg Vol 1Wk | 2,44,957 |
| Low price | 1,267 ₹ | High price | 1,950 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.18 |
| 52w Index | 67.3 % | Qtr Profit Var | -5.24 % | EPS | 40.2 ₹ | Industry PE | 19.6 |
Gravita India (GRAVITA) shows strong fundamentals with ROCE (19.6%) and ROE (17.3%), supported by a low debt-to-equity ratio (0.18) and EPS of ₹40.2. The PEG ratio of 1.00 suggests fair valuation relative to growth. The current price (₹1,726) is above both the 50 DMA (₹1,625) and 200 DMA (₹1,656), reflecting bullish technical momentum. RSI at 63.1 indicates nearing overbought territory, while MACD at 7.56 confirms positive momentum. Volume is higher than average, showing strong participation. However, quarterly PAT declined (-5.24%), and FII holdings decreased (-1.81%), raising caution. Overall, Gravita is a moderately favorable swing trade candidate.
🎯 Optimal Entry Price
Entry around ₹1,680–₹1,700 (near support zone above 50 DMA) is favorable for swing trading.
📈 Exit Strategy
If already holding, consider exiting near ₹1,800–₹1,850 (resistance zone). A strict stop-loss below ₹1,650 is advisable to manage risk.
✅ Positive
- 📌 Strong ROCE (19.6%) and ROE (17.3%).
- 📌 EPS of ₹40.2 supports earnings stability.
- 📌 PEG ratio of 1.00 indicates fair valuation.
- 📌 Price trading above both 50 DMA and 200 DMA confirms bullish trend.
- 📌 DII holdings increased (+0.44%), showing domestic institutional confidence.
⚠️ Limitation
- 📌 Quarterly PAT declined from ₹72.2 Cr. to ₹69.7 Cr. (-5.24%).
- 📌 RSI at 63.1 signals nearing overbought territory.
- 📌 FII holdings decreased (-1.81%), showing reduced foreign investor confidence.
- 📌 Dividend yield is low (0.37%).
📰 Company Negative News
- 📌 Decline in quarterly profits raises concerns about earnings stability.
- 📌 Reduced foreign institutional interest (-1.81%).
🌟 Company Positive News
- 📌 Domestic institutional investors increasing stake.
- 📌 Strong efficiency ratios compared to peers.
🏭 Industry
- 📌 Industry P/E at 19.6 is lower than GRAVITA’s 42.9, suggesting relative overvaluation.
- 📌 Metals and recycling sector outlook remains steady with long-term demand drivers.
🔎 Conclusion
Gravita India is fundamentally strong but faces short-term profit weakness. Entry near ₹1,680–₹1,700 offers a reasonable setup, with profit booking advisable near ₹1,800–₹1,850. A strict stop-loss below ₹1,650 is essential to manage risk due to declining quarterly profits and reduced foreign investor confidence.
Would you like me to extend this with a technical chart analysis or a peer benchmarking comparison to refine the swing trade outlook?