GUJGASLTD - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.7

📊 GUJGASLTD shows solid fundamentals with low debt and decent profitability, but weak technical indicators and declining profits limit short-term swing trade potential. The stock is trading below both its 50 DMA and 200 DMA, suggesting caution for traders.

✅ Optimal Entry Price: 380–390 ₹ (near support and close to recent low)

📈 Exit Strategy: If already holding, consider exiting near 430–450 ₹ resistance zone or if RSI recovers above 55.

Positive

• 💡 Strong ROCE (19.6%) and ROE (14.3%) highlight efficient capital utilization.
• 🛡️ Very low Debt-to-Equity (0.02) ensures financial stability.
• 💰 Dividend Yield (1.55%) provides steady shareholder returns.
• 📊 EPS (16.2 ₹) supports valuation strength.

Limitation

• ⚠️ RSI (32.8) and negative MACD (-5.66) indicate weak momentum.
• 📉 Stock trading below DMA 50 (406 ₹) and DMA 200 (439 ₹) signals bearish trend.
• 🔎 PEG ratio (-6.33) highlights poor valuation relative to growth.
• 📉 Quarterly profit variation (-8.44%) shows earnings pressure.

Company Negative News

• 📉 Decline in FII holding (-0.16%) and DII holding (-0.03%) reflects reduced institutional confidence.
• 📉 PAT dropped from 327 Cr. to 281 Cr., showing earnings weakness.

Company Positive News

• 💰 Attractive Dividend Yield (1.55%) supports investor returns.
• 📊 Strong ROCE and ROE indicate operational efficiency despite short-term weakness.

Industry

• 🏭 Industry PE (20.4) is slightly lower than GUJGASLTD’s PE (24.3), suggesting mild premium valuation.
• 📊 Gas distribution sector outlook remains stable with long-term demand growth potential.

Conclusion

🔑 GUJGASLTD is a cautious swing trade candidate with strong fundamentals but weak technicals and declining profits. Entry near 380–390 ₹ offers a limited-risk setup. Exit near 430–450 ₹ is advisable if holding, unless momentum indicators improve significantly. Short-term outlook is weak, but long-term fundamentals remain supportive.

I can also prepare a side-by-side HTML comparison of GUJGASLTD with FLUOROCHEM so you can evaluate which one offers stronger swing trade potential.