GRASIM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GRASIM | Market Cap | 1,90,172 Cr. | Current Price | 2,794 ₹ | High / Low | 2,980 ₹ |
| Stock P/E | 493 | Book Value | 808 ₹ | Dividend Yield | 0.36 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,736 ₹ | DMA 200 | 2,746 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | -0.71 % | PAT Qtr | -127 Cr. | PAT Prev Qtr | 805 Cr. |
| RSI | 58.2 | MACD | 25.6 | Volume | 12,06,394 | Avg Vol 1Wk | 12,13,735 |
| Low price | 2,502 ₹ | High price | 2,980 ₹ | PEG Ratio | -8.17 | Debt to equity | 0.24 |
| 52w Index | 61.2 % | Qtr Profit Var | 24.8 % | EPS | 3.29 ₹ | Industry PE | 30.8 |
📈 Chart & Trend: GRASIM is trading near its 50 DMA (2,736 ₹) and 200 DMA (2,746 ₹), showing indecision and consolidation. RSI at 58.2 indicates neutral-to-bullish momentum, while MACD at 25.6 remains positive, suggesting mild upward bias. Bollinger Bands show price mid-range, pointing to consolidation rather than breakout.
🔎 Momentum Signals: Current volume (12.06 lakh) is nearly equal to the 1-week average (12.13 lakh), reflecting stable participation. Momentum remains neutral with limited upside unless earnings improve.
🎯 Entry Zone: 2,720–2,740 ₹ (support near DMA levels)
🚪 Exit Zone: 2,850–2,900 ₹ (resistance near recent highs)
📊 Trend Status: Consolidating with mild upward bias.
Positive
- Strong book value (808 ₹) provides downside cushion.
- Dividend yield at 0.36% offers steady income.
- FII holdings increased (+0.42%), showing foreign investor confidence.
- Price stability near DMA levels supports consolidation.
Limitation
- Extremely high P/E (493) compared to industry average (30.8), indicating steep overvaluation.
- Weak ROCE (1.52%) and ROE (0.35%) highlight poor efficiency.
- PEG ratio (-8.17) signals weak growth prospects.
- Quarterly PAT turned negative (-127 Cr. vs 805 Cr. previous), showing earnings stress.
Company Negative News
- Sharp decline in quarterly profits and weak EPS (3.29 ₹).
- DII holdings decreased (-0.71%), signaling reduced domestic confidence.
Company Positive News
- Strong institutional support from FIIs (+0.42%).
- Stable trading near DMA levels despite earnings weakness.
Industry
- Industry P/E at 30.8 reflects moderate valuations across diversified industrial sector.
- Sector supported by demand in cement, textiles, and chemicals.
Conclusion
GRASIM is consolidating near key DMA levels with mild upward bias but faces significant earnings and valuation concerns. Entry near 2,720–2,740 ₹ offers cautious accumulation, while profit booking is advised near 2,850–2,900 ₹. Short-term outlook remains neutral, with long-term prospects dependent on profitability recovery and valuation correction.
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