GRAPHITE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GRAPHITE | Market Cap | 12,205 Cr. | Current Price | 624 ₹ | High / Low | 747 ₹ |
| Stock P/E | 29.1 | Book Value | 287 ₹ | Dividend Yield | 1.76 % | ROCE | 10.3 % |
| ROE | 8.26 % | Face Value | 2.00 ₹ | DMA 50 | 643 ₹ | DMA 200 | 589 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | 0.44 % | PAT Qtr | 121 Cr. | PAT Prev Qtr | 92.0 Cr. |
| RSI | 42.4 | MACD | -9.14 | Volume | 4,71,159 | Avg Vol 1Wk | 9,43,067 |
| Low price | 411 ₹ | High price | 747 ₹ | PEG Ratio | -3.78 | Debt to equity | 0.03 |
| 52w Index | 63.4 % | Qtr Profit Var | 3,920 % | EPS | 20.4 ₹ | Industry PE | 32.5 |
📊 Chart & Trend: GRAPHITE is trading at ₹624, below its 50 DMA (₹643) but above its 200 DMA (₹589), reflecting mixed signals. RSI at 42.4 suggests neutral-to-bearish momentum, while MACD (-9.14) confirms bearish undertones. Bollinger Bands show price leaning toward the lower band, signaling selling pressure and consolidation.
📈 Momentum Signals: Volume (4.71L) is lower than the 1-week average (9.43L), showing reduced participation. RSI below 45 indicates mild weakness, while MACD suggests continuation of bearish bias despite recent support near 200 DMA.
💡 Entry Zone: ₹610–₹625 (support zone).
🚪 Exit Zone: ₹640–₹660 (resistance). A breakout above ₹660 could open room toward ₹700.
📌 Trend Status: The stock is currently consolidating with bearish bias after correcting from its high of ₹747, with sideways-to-downward movement around key averages.
Positive
- Quarterly PAT growth (₹121 Cr vs ₹92 Cr) shows earnings momentum.
- DII holdings increased (+0.44%), signaling domestic institutional support.
- EPS of ₹20.4 reflects profitability.
- Dividend yield of 1.76% adds income appeal.
- 52-week index gain of 63.4% highlights strong investor confidence.
Limitation
- Stock P/E (29.1) is slightly above industry PE (32.5), limiting valuation comfort.
- ROCE (10.3%) and ROE (8.26%) are moderate compared to sector leaders.
- PEG ratio (-3.78) indicates valuation concerns relative to growth trajectory.
Company Negative News
- Decline in FII holdings (-0.17%) signals reduced foreign investor confidence.
- Stock corrected sharply from its 52-week high of ₹747, showing volatility.
Company Positive News
- Quarterly profit variation (+3,920%) highlights strong earnings recovery.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Strong rally from ₹411 to ₹747 shows momentum strength.
Industry
- Graphite electrode and specialty chemical sector benefits from industrial demand cycles.
- Industry PE (32.5) is slightly higher than GRAPHITE’s P/E, suggesting relative undervaluation.
- Peers trade at premium valuations, positioning GRAPHITE as a value play with cyclical upside.
Conclusion
⚖️ GRAPHITE is consolidating with bearish undertones, trading below its 50 DMA but supported by the 200 DMA. Fundamentals show strong earnings recovery, low debt, and institutional support, but valuation concerns and moderate ROCE/ROE remain. Entry near ₹610–₹625 offers a margin of safety, with exits around ₹640–₹660. Long-term investors may hold for cyclical sector strength, while traders should watch for a breakout above ₹660 for momentum trades.
Selva, would you like me to extend this into a peer benchmarking overlay against industrial players like HEG, Rain Industries, and Graphite India? That would highlight relative strength and sector rotation opportunities alongside GRAPHITE.