GRASIM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | GRASIM | Market Cap | 1,84,851 Cr. | Current Price | 2,716 ₹ | High / Low | 2,980 ₹ |
| Stock P/E | 479 | Book Value | 808 ₹ | Dividend Yield | 0.37 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,785 ₹ | DMA 200 | 2,762 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.28 % | PAT Qtr | -127 Cr. | PAT Prev Qtr | 805 Cr. |
| RSI | 46.7 | MACD | -46.4 | Volume | 11,82,222 | Avg Vol 1Wk | 11,30,548 |
| Low price | 2,426 ₹ | High price | 2,980 ₹ | PEG Ratio | -7.94 | Debt to equity | 0.24 |
| 52w Index | 52.2 % | Qtr Profit Var | 24.8 % | EPS | 3.29 ₹ | Industry PE | 28.2 |
📊 Chart & Trend: GRASIM is trading at ₹2,716, below both its 50 DMA (₹2,785) and 200 DMA (₹2,762), reflecting weakness. RSI at 46.7 suggests neutral-to-bearish momentum, while MACD (-46.4) confirms bearish undertones. Bollinger Bands show price leaning toward the lower band, signaling selling pressure and consolidation.
📈 Momentum Signals: Volume (11.8L) is slightly above the 1-week average (11.3L), showing increased activity despite weakness. RSI below 50 indicates mild bearishness, while MACD suggests continuation of downward bias.
💡 Entry Zone: ₹2,650–₹2,700 (support zone).
🚪 Exit Zone: ₹2,780–₹2,820 (resistance). A breakout above ₹2,820 could open room toward ₹2,900.
📌 Trend Status: The stock is currently consolidating with bearish bias after correcting from its high of ₹2,980, with sideways-to-downward movement around key averages.
Positive
- Book value of ₹808 provides margin of safety.
- DII holdings increased (+0.12%), signaling domestic institutional support.
- Strong 52-week index gain of 52.2% highlights investor confidence.
Limitation
- Extremely high P/E (479) compared to industry PE (28.2), suggesting stretched valuation.
- ROCE (1.52%) and ROE (0.35%) are very weak compared to peers.
- PEG ratio (-7.94) indicates valuation concerns relative to growth trajectory.
Company Negative News
- Quarterly PAT turned negative (-₹127 Cr vs ₹805 Cr previous quarter).
- Stock corrected sharply from its 52-week high of ₹2,980, showing volatility.
- Decline in DII holdings (-0.28%) signals reduced domestic institutional confidence.
Company Positive News
- EPS of ₹3.29 reflects profitability despite weak margins.
- Strong historical rally with 52-week gain of 52.2% shows investor optimism.
- Low debt-to-equity ratio (0.24) ensures financial stability.
Industry
- Cement and diversified industrial sector benefits from infrastructure demand.
- Industry PE (28.2) is much lower than GRASIM’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning GRASIM as a premium but risky play.
Conclusion
⚖️ GRASIM is consolidating with bearish undertones, trading below key moving averages. Fundamentals show weak profitability (negative PAT, low ROCE/ROE) and stretched valuation, though book value and sector strength provide some cushion. Entry near ₹2,650–₹2,700 offers a margin of safety, with exits around ₹2,780–₹2,820. Long-term investors should be cautious due to earnings weakness, while traders may look for short-term rebounds or momentum trades above ₹2,820.
Selva, would you like me to extend this into a peer benchmarking overlay against cement and industrial players like UltraTech Cement, Shree Cement, and Ambuja? That would highlight relative strength and sector rotation opportunities alongside GRASIM.