GRSE - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📈 Analysis: GRSE presents a mixed swing trade setup with strong fundamentals but weak technical momentum. The current price of ₹2,556 is below the 50 DMA (₹2,595) and above the 200 DMA (₹2,339), indicating a potential support zone but short-term weakness. RSI at 45.3 and MACD at -11.5 suggest bearish sentiment. However, the company boasts excellent ROCE (36.6%) and ROE (27.6%), zero debt, and a reasonable PEG ratio (1.24), making it fundamentally sound. The recent drop in quarterly PAT and reduced FII holding are cautionary signals.

🎯 Optimal Entry Price: ₹2,500–₹2,530 (near 200 DMA and RSI support)

🚪 Exit Strategy (if holding): Consider exiting near ₹2,750–₹2,800 or if RSI crosses 60 with MACD turning positive.

✅ Positive

• 📊 Strong ROCE (36.6%) and ROE (27.6%) — excellent capital efficiency
• 💸 Zero debt — robust financial health
• 📈 PEG ratio of 1.24 — reasonable growth valuation
• 📉 EPS of ₹48.9 — solid earnings base
• 📈 DII holding increased (+0.18%) — domestic institutional support

⚠️ Limitation

• 📉 Price below 50 DMA and weak MACD — short-term bearish trend
• 📉 RSI at 45.3 — neutral to weak momentum
• 📉 FII holding decreased (-2.07%) — foreign investor caution
• 📉 Quarterly PAT dropped from ₹244 Cr. to ₹120 Cr.

📰 Company Negative News

• No major public negative news, but earnings drop and FII reduction are red flags

🌟 Company Positive News

• Strong return ratios and zero debt position support long-term investor confidence

🏭 Industry

• Industry P/E is 66.4 — GRSE trades below, offering relative valuation comfort
• Defense and shipbuilding sector benefits from government contracts and strategic investments

🧾 Conclusion

GRSE is a fundamentally strong but technically weak swing trade candidate. Entry near 200 DMA offers a low-risk setup if momentum improves. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also compare GRSE’s setup with peers like Mazagon Dock or Cochin Shipyard to refine your swing strategy.