GRAPHITE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | GRAPHITE | Market Cap | 11,705 Cr. | Current Price | 595 ₹ | High / Low | 685 ₹ |
| Stock P/E | 38.8 | Book Value | 287 ₹ | Dividend Yield | 1.85 % | ROCE | 10.3 % |
| ROE | 8.26 % | Face Value | 2.00 ₹ | DMA 50 | 603 ₹ | DMA 200 | 562 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | 0.44 % | PAT Qtr | 92.0 Cr. | PAT Prev Qtr | 145 Cr. |
| RSI | 44.8 | MACD | 8.47 | Volume | 10,98,609 | Avg Vol 1Wk | 14,87,163 |
| Low price | 366 ₹ | High price | 685 ₹ | PEG Ratio | -5.04 | Debt to equity | 0.03 |
| 52w Index | 71.9 % | Qtr Profit Var | -49.4 % | EPS | 15.5 ₹ | Industry PE | 38.4 |
📈 Chart & Trend Analysis: GRAPHITE is trading at ₹595, slightly below its 50 DMA (₹603) but above the 200 DMA (₹562). This indicates short-term weakness but medium-term support. RSI at 44.8 suggests the stock is nearing oversold territory, while MACD at 8.47 signals mild bullish momentum. Bollinger Bands show price near the lower-middle range, reflecting consolidation with potential for a rebound.
📊 Volume Trends: Current volume (10.9 lakh) is lower than the 1-week average (14.9 lakh), suggesting reduced participation and limited momentum strength.
🎯 Entry Zone: ₹580 – ₹600 (support near 200 DMA)
🚪 Exit Zone: ₹640 – ₹660 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with mild bullish bias — price is holding above the 200 DMA, with MACD positive but RSI weak, indicating sideways movement with potential recovery if volume improves.
Positive ✅
- Debt-to-equity ratio of 0.03 shows negligible leverage risk.
- Dividend yield of 1.85% provides shareholder value.
- EPS of ₹15.5 supports valuation strength.
- 52-week performance index gain of 71.9% highlights long-term resilience.
- DII holdings increased (+0.44%), reflecting domestic institutional support.
Limitation ⚠️
- Price trading below 50 DMA indicates short-term weakness.
- ROE (8.26%) and ROCE (10.3%) are modest compared to sector leaders.
- PEG ratio of -5.04 highlights weak growth-adjusted valuation.
- Quarterly PAT decline (₹92 Cr vs ₹145 Cr) shows earnings pressure.
- Volume participation is below average, limiting breakout potential.
Company Negative News 📉
- Quarterly profit variation of -49.4% indicates sharp earnings decline.
- Decline in FII holdings (-0.17%) reflects reduced foreign investor confidence.
Company Positive News 📈
- EPS of ₹15.5 reflects consistent earnings performance despite profit decline.
- DII inflows (+0.44%) show domestic institutional confidence.
Industry 🌐
- Industry P/E at 38.4 suggests sector trades at premium valuations.
- Graphite electrode sector benefits from steel demand cycles and global industrial recovery.
Conclusion 📝
GRAPHITE is consolidating with mild bullish bias, trading below its 50 DMA but supported by the 200 DMA. RSI near oversold and positive MACD suggest potential recovery, though weak volume and earnings decline limit upside. Entry near ₹580–₹600 offers margin of safety, while exits around ₹640–₹660 provide profit-taking opportunities. Fundamentally stable with low debt and decent dividend yield, but modest ROE/ROCE and profit decline warrant cautious optimism. Traders may play the consolidation range, while long-term investors should accumulate selectively given sector cyclicality.
Would you like me to extend this into a peer benchmarking overlay (comparing GRAPHITE against peers like HEG, Rain Industries, and other electrode producers) so you can evaluate relative strength and sector rotation opportunities?