GUJGASLTD - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.2

GUJGASLTD stands on strong fundamentals — including excellent capital efficiency, minimal debt, and a healthy dividend — but the current technical indicators signal weakness. The price is below both moving averages, and momentum is lacking. This makes it a watchlist-worthy stock, best suited for a bounce-based swing if momentum returns.

🧠 Fundamental Overview

Valuation

P/E: 27.2 vs Industry P/E: 18.5 → Slightly overvalued

PEG Ratio: -6.80 → Indicates poor visibility on future growth

Profitability

ROCE: 19.2%, ROE: 14.2% → Strong returns

EPS: ₹16.7, Book Value: ₹123 → Reasonably priced asset base

Financial Strength

Debt-to-Equity: 0.02 → Virtually debt-free

Dividend Yield: 1.25% → A bonus for medium-term holders

Quarterly PAT Trend

₹288 Cr. vs ₹221 Cr. → Recent uptick, but Quarter Profit Var: -22% signals instability

📉 Technical Breakdown

Current Price: ₹452

Below DMA 50 (₹466) and DMA 200 (₹477) → Weak near-term trend

Momentum Indicators

RSI: 38.5 → Near oversold, early reversal signs possible

MACD: -2.81 → Negative crossover, caution warranted

Volume

1.14L vs Avg 3.07L → Low participation, confirms weak sentiment

52W Index: 27.8% → Plenty of upside, but resistance at ₹690 looms large

🎯 Swing Trade Strategy

If RSI begins rising above 42 and MACD flattens or crosses into positive territory, GUJGASLTD may become attractive for a short-term rebound play.

✅ Optimal Entry Range

Buy Zone: ₹445–₹455 Enter cautiously with confirmation from momentum indicators.

🚪 Exit Strategy

Target Price: ₹475–₹490 Approach 200-DMA and short-term resistance.

Stop-Loss: ₹438 Protect capital below recent support.

💼 If You're Already Holding

Consider exiting partially near ₹490 unless strong volume and RSI improvement appear.

MACD turning up and RSI > 45 can warrant trailing stops for extended gains.

If price dips below ₹440 with no volume recovery — defensive action is smart.

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