GUJGASLTD - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📈 Analysis: GUJGASLTD presents a cautious swing trade opportunity with strong fundamentals but weak technical momentum. The current price of ₹408 is below both the 50 DMA (₹426) and 200 DMA (₹453), indicating a short-term downtrend. RSI at 36.6 and MACD at -6.10 suggest oversold conditions, which could lead to a technical bounce. The company has excellent ROCE (19.6%), ROE (14.3%), and a low debt-to-equity ratio (0.02), making it financially robust. However, the PEG ratio of -6.39 and declining institutional interest raise caution. Volume is also below average, indicating subdued market participation.

🎯 Optimal Entry Price: ₹400–₹410 (near support and oversold RSI zone)

🚪 Exit Strategy (if holding): Consider exiting near ₹440–₹455 (approaching 200 DMA) or if RSI crosses 60 with MACD turning positive.

✅ Positive

• 📊 ROCE (19.6%) and ROE (14.3%) — strong operational efficiency
• 💸 Low debt-to-equity ratio (0.02) — excellent financial health
• 📈 EPS of ₹16.6 — consistent earnings
• 💰 Dividend yield of 1.43% — decent income support
• 📊 PAT growth from ₹287 Cr. to ₹327 Cr. — stable profitability

⚠️ Limitation

• 📉 Price below 50 & 200 DMA — short-term bearish trend
• 📉 RSI and MACD indicate weak momentum
• 📉 PEG ratio of -6.39 — poor growth valuation
• 📉 FII (-0.16%) and DII (-0.03%) holdings decreased — institutional caution
• 📉 Volume below weekly average — reduced trading interest

📰 Company Negative News

• No major public negative news, but technical weakness and institutional outflows are cautionary

🌟 Company Positive News

• Strong financial ratios and consistent PAT growth reflect operational strength and long-term stability

🏭 Industry

• Industry P/E is 19.7 — GUJGASLTD trades at a slight premium, reflecting investor confidence
• Gas distribution sector benefits from urban expansion and clean energy initiatives

🧾 Conclusion

GUJGASLTD is a fundamentally strong but technically weak swing trade candidate. Entry near support offers a tactical opportunity if momentum improves. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also help you compare GUJGASLTD’s setup with peers like MGL or IGL to refine your swing strategy.