GRAVITA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | GRAVITA | Market Cap | 11,537 Cr. | Current Price | 1,562 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 38.3 | Book Value | 231 ₹ | Dividend Yield | 0.41 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,692 ₹ | DMA 200 | 1,744 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 39.8 | MACD | -59.4 | Volume | 1,36,523 | Avg Vol 1Wk | 2,45,768 |
| Low price | 1,380 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.57 | Debt to equity | 0.11 |
| 52w Index | 23.0 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 20.2 |
📈 Chart & Trend Analysis: GRAVITA is trading at ₹1,562, below both its 50 DMA (₹1,692) and 200 DMA (₹1,744), indicating short-term and medium-term weakness. RSI at 39.8 suggests the stock is nearing oversold territory, while MACD at -59.4 confirms strong bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure and possible consolidation.
📊 Volume Trends: Current volume (1.36 lakh) is significantly lower than the 1-week average (2.46 lakh), suggesting weak participation and lack of momentum for a breakout.
🎯 Entry Zone: ₹1,520 – ₹1,560 (support near recent lows)
🚪 Exit Zone: ₹1,680 – ₹1,720 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below moving averages, with weak RSI and negative MACD confirming downside pressure. Oversold conditions may trigger a short-term rebound, but trend remains weak.
Positive ✅
- Strong ROCE (21.4%) and ROE (18.5%) indicate efficient capital use.
- Debt-to-equity ratio of 0.11 shows low leverage risk.
- EPS of ₹40.8 supports valuation strength.
- Quarterly profit variation of 111% highlights strong year-on-year growth.
- FII holdings increased (+1.10%), reflecting foreign investor confidence.
Limitation ⚠️
- Price trading below both 50 DMA and 200 DMA indicates technical weakness.
- PEG ratio of 0.57 highlights moderate growth-adjusted valuation.
- Dividend yield of 0.41% is relatively low.
- Volume participation is below average, limiting breakout potential.
Company Negative News 📉
- Quarterly PAT declined sequentially (₹72.2 Cr vs ₹87.2 Cr), showing short-term earnings pressure.
- DII holdings decreased (-0.16%), indicating reduced domestic institutional confidence.
Company Positive News 📈
- Strong year-on-year profit growth (111% variation).
- EPS of ₹40.8 reflects consistent earnings performance.
- FII inflows (+1.10%) show foreign investor confidence.
Industry 🌐
- Industry P/E at 20.2 suggests sector trades at fair valuations.
- Recycling and metals sector benefits from global demand for sustainable materials and industrial recovery.
Conclusion 📝
GRAVITA is consolidating with bearish bias, trading below its moving averages with RSI near oversold and negative MACD confirming weakness. Entry near ₹1,520–₹1,560 offers margin of safety, while exits around ₹1,680–₹1,720 provide profit-taking opportunities. Fundamentally strong with high ROCE, ROE, and low debt, but sequential profit decline and weak technical signals limit upside. Traders may look for short-term rebound opportunities, while long-term investors should accumulate selectively given sector resilience and sustainability-driven demand.
Would you like me to extend this into a peer benchmarking overlay (comparing GRAVITA against recycling and metals peers like Hindustan Zinc, Nalco, and Vedanta) so you can evaluate relative strength and sector rotation opportunities?