GRASIM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | GRASIM | Market Cap | 1,86,303 Cr. | Current Price | 2,738 ₹ | High / Low | 2,979 ₹ |
| Stock P/E | 542 | Book Value | 808 ₹ | Dividend Yield | 0.37 % | ROCE | 1.52 % |
| ROE | 0.35 % | Face Value | 2.00 ₹ | DMA 50 | 2,798 ₹ | DMA 200 | 2,747 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.28 % | PAT Qtr | 805 Cr. | PAT Prev Qtr | -118 Cr. |
| RSI | 42.4 | MACD | -2.59 | Volume | 1,95,812 | Avg Vol 1Wk | 8,14,226 |
| Low price | 2,301 ₹ | High price | 2,979 ₹ | PEG Ratio | -8.98 | Debt to equity | 0.24 |
| 52w Index | 64.4 % | Qtr Profit Var | 6.31 % | EPS | 3.29 ₹ | Industry PE | 30.0 |
📈 Chart & Trend Analysis: GRASIM is trading at ₹2,738, below its 50 DMA (₹2,798) but marginally above the 200 DMA (₹2,747). This indicates short-term weakness but medium-term support. RSI at 42.4 suggests the stock is approaching oversold territory, while MACD at -2.59 signals mild bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure and possible consolidation.
📊 Volume Trends: Current volume (1.96 lakh) is significantly lower than the 1-week average (8.14 lakh), suggesting weak participation and lack of momentum for a breakout.
🎯 Entry Zone: ₹2,700 – ₹2,740 (support near 200 DMA)
🚪 Exit Zone: ₹2,850 – ₹2,900 (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, but trend remains weak.
Positive ✅
- Book value of ₹808 provides strong asset backing.
- Quarterly PAT recovery (₹805 Cr vs -₹118 Cr) shows earnings turnaround.
- FII holdings increased (+0.12%), reflecting foreign investor confidence.
- 52-week performance index gain of 64.4% highlights long-term resilience.
Limitation ⚠️
- Extremely high P/E of 542 compared to industry average (30.0) indicates distorted valuation.
- ROE (0.35%) and ROCE (1.52%) are very weak, reflecting poor efficiency.
- PEG ratio of -8.98 highlights weak growth-adjusted valuation.
- Dividend yield of 0.37% is relatively low.
- Volume participation is below average, limiting breakout potential.
Company Negative News 📉
- Decline in DII holdings (-0.28%) indicates reduced domestic institutional confidence.
- Quarterly profit variation of only 6.31% shows limited earnings momentum.
Company Positive News 📈
- Return to profitability after a loss in the previous quarter.
- EPS of ₹3.29 reflects earnings recovery, though still modest.
Industry 🌐
- Industry P/E at 30.0 suggests sector trades at premium valuations.
- Diversified industrial sector benefits from exposure to cement, chemicals, and textiles, but cyclical risks remain.
Conclusion 📝
GRASIM is consolidating with bearish bias, trading below its 50 DMA but supported by the 200 DMA. RSI near oversold and negative MACD confirm weakness, while low volume participation limits breakout potential. Entry near ₹2,700–₹2,740 offers margin of safety, while exits around ₹2,850–₹2,900 provide profit-taking opportunities. Fundamentally challenged by weak ROE/ROCE and distorted valuations, though recent profitability recovery and strong asset base provide positives. Traders should approach cautiously, while long-term investors may accumulate selectively given sector diversification.
Would you like me to extend this into a peer benchmarking overlay (comparing GRASIM against peers like UltraTech Cement, Aditya Birla Capital, and Shree Cement) so you can evaluate relative strength and sector rotation opportunities?