GPIL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | GPIL | Market Cap | 16,295 Cr. | Current Price | 243 ₹ | High / Low | 290 ₹ |
| Stock P/E | 20.6 | Book Value | 75.4 ₹ | Dividend Yield | 0.41 % | ROCE | 23.4 % |
| ROE | 17.1 % | Face Value | 1.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | -0.73 % | Chg in DII Hold | 0.10 % | PAT Qtr | 248 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 43.4 | MACD | -1.72 | Volume | 29,26,945 | Avg Vol 1Wk | 23,26,770 |
| Low price | 146 ₹ | High price | 290 ₹ | PEG Ratio | -1.33 | Debt to equity | 0.03 |
| 52w Index | 67.3 % | Qtr Profit Var | 60.7 % | EPS | 11.8 ₹ | Industry PE | 18.7 |
📈 Chart & Trend Analysis: GPIL is trading at ₹243, below its 50 DMA (₹252) but above the 200 DMA (₹232). This indicates short-term weakness but medium-term support. RSI at 43.4 suggests the stock is approaching oversold territory, while MACD at -1.72 signals mild bearish momentum. Bollinger Bands show price near the lower band, reflecting pressure and possible consolidation.
📊 Volume Trends: Current volume (29.3 lakh) is higher than the 1-week average (23.2 lakh), suggesting active participation despite bearish signals, which may support a potential rebound.
🎯 Entry Zone: ₹235 – ₹245 (support near 200 DMA)
🚪 Exit Zone: ₹265 – ₹275 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below the 50 DMA, with weak RSI and negative MACD confirming downside pressure. A bounce from oversold levels could trigger short-term recovery.
Positive ✅
- Strong ROCE (23.4%) and ROE (17.1%) indicate efficient capital use.
- Debt-to-equity ratio of 0.03 shows negligible leverage risk.
- Quarterly PAT growth (₹248 Cr vs ₹200 Cr) reflects earnings momentum.
- 52-week performance index gain of 67.3% highlights long-term strength.
Limitation ⚠️
- Price trading below 50 DMA indicates short-term weakness.
- High P/E of 20.6 compared to industry average (18.7) suggests stretched valuations.
- PEG ratio of -1.33 highlights weak growth-adjusted valuation.
- Dividend yield of 0.41% is relatively low.
Company Negative News 📉
- Decline in FII holdings (-0.73%) suggests reduced foreign investor confidence.
Company Positive News 📈
- Quarterly profit growth of 60.7% shows strong earnings momentum.
- DII holdings increased (+0.10%), reflecting domestic institutional support.
Industry 🌐
- Industry P/E at 18.7 suggests sector trades at fair valuations.
- Steel and mining sector benefits from infrastructure demand and commodity cycles.
Conclusion 📝
GPIL is consolidating with bearish bias, trading below its 50 DMA but supported by the 200 DMA. RSI and MACD confirm weakness, though higher-than-average volume suggests potential rebound. Entry near ₹235–₹245 offers margin of safety, while exits around ₹265–₹275 provide profit-taking opportunities. Fundamentally strong with high ROCE and low debt, but stretched valuations and weak PEG ratio limit upside. Traders may play the consolidation range, while long-term investors can accumulate selectively for exposure to steel and mining sector growth.
Would you like me to extend this into a peer benchmarking overlay (comparing GPIL against steel/mining peers like Tata Steel, JSW Steel, NMDC) so you can evaluate relative strength and sector rotation opportunities?