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GPIL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.9

Stock Code GPIL Market Cap 19,933 Cr. Current Price 296 ₹ High / Low 313 ₹
Stock P/E 24.9 Book Value 75.4 ₹ Dividend Yield 0.34 % ROCE 23.4 %
ROE 17.1 % Face Value 1.00 ₹ DMA 50 278 ₹ DMA 200 250 ₹
Chg in FII Hold 0.04 % Chg in DII Hold 0.10 % PAT Qtr 149 Cr. PAT Prev Qtr 248 Cr.
RSI 56.3 MACD 8.24 Volume 33,11,909 Avg Vol 1Wk 47,01,130
Low price 170 ₹ High price 313 ₹ PEG Ratio -1.60 Debt to equity 0.03
52w Index 88.3 % Qtr Profit Var 9.42 % EPS 12.0 ₹ Industry PE 22.1

📈 Chart & Trend: GPIL is trading above both its 50 DMA (278 ₹) and 200 DMA (250 ₹), confirming bullish alignment. RSI at 56.3 indicates healthy momentum without being overbought. MACD at 8.24 remains positive, supporting upward bias. Bollinger Bands show price near mid-to-upper range, suggesting continuation with mild resistance.

🔎 Momentum Signals: Current volume (33.1 lakh) is below the 1-week average (47.0 lakh), reflecting reduced participation. Momentum remains positive but upside may be capped unless volume strengthens.

🎯 Entry Zone: 285–290 ₹ (support near 50 DMA)

🚪 Exit Zone: 305–310 ₹ (resistance near 52-week high)

📊 Trend Status: Trending upward with signs of consolidation.

Positive

  • Strong ROCE (23.4%) and ROE (17.1%) highlight efficient capital use.
  • Low debt-to-equity (0.03) ensures financial stability.
  • EPS at 12.0 ₹ provides steady earnings base.
  • DII holdings increased (+0.10%), showing domestic support.

Limitation

  • PEG ratio (-1.60) indicates weak growth prospects relative to valuation.
  • Quarterly PAT declined from 248 Cr. to 149 Cr., showing earnings pressure.
  • Volume participation is weaker compared to average, limiting breakout potential.
  • P/E (24.9) slightly above industry average (22.1), suggesting mild overvaluation.

Company Negative News

  • Sequential decline in quarterly profits.
  • FII holdings only marginally increased (+0.04%), showing limited foreign confidence.

Company Positive News

  • Strong technical momentum supported by price above both 50 DMA and 200 DMA.
  • Domestic institutional inflows (+0.10%) provide stability.

Industry

  • Industry P/E at 22.1 is lower than GPIL’s, showing slight overvaluation relative to peers.
  • Metals and mining sector outlook remains positive with strong demand and commodity price support.

Conclusion

GPIL shows bullish momentum supported by technical alignment and decent fundamentals. Entry near 285–290 ₹ offers favorable risk-reward, while profit booking is advised near 305–310 ₹. Short-term outlook suggests consolidation, but long-term sector strength supports continued accumulation with caution on earnings pressure.

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