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GRAVITA - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.9

Stock Code GRAVITA Market Cap 12,031 Cr. Current Price 1,630 ₹ High / Low 2,170 ₹
Stock P/E 40.0 Book Value 231 ₹ Dividend Yield 0.39 % ROCE 21.4 %
ROE 18.5 % Face Value 2.00 ₹ DMA 50 1,557 ₹ DMA 200 1,655 ₹
Chg in FII Hold -1.81 % Chg in DII Hold 0.44 % PAT Qtr 72.2 Cr. PAT Prev Qtr 87.2 Cr.
RSI 59.1 MACD 40.5 Volume 2,23,127 Avg Vol 1Wk 2,31,196
Low price 1,267 ₹ High price 2,170 ₹ PEG Ratio 0.59 Debt to equity 0.11
52w Index 40.2 % Qtr Profit Var 111 % EPS 40.8 ₹ Industry PE 19.7

📈 Chart & Trend: GRAVITA is trading above its 50 DMA (1,557 ₹) but slightly below the 200 DMA (1,655 ₹), showing short-term strength with medium-term resistance. RSI at 59.1 indicates healthy momentum, while MACD at 40.5 remains strongly positive. Bollinger Bands suggest price is mid-to-upper range, pointing to consolidation with bullish bias.

🔎 Momentum Signals: Current volume (2.23 lakh) is slightly below the 1-week average (2.31 lakh), reflecting stable participation. Momentum remains positive, but upside may be capped unless volume strengthens.

🎯 Entry Zone: 1,580–1,600 ₹ (support near 50 DMA)

🚪 Exit Zone: 1,680–1,700 ₹ (resistance near 200 DMA)

📊 Trend Status: Consolidating with bullish bias.

Positive

  • Strong ROCE (21.4%) and ROE (18.5%) highlight efficient capital use.
  • PEG ratio (0.59) suggests fair valuation relative to growth.
  • EPS at 40.8 ₹ supports earnings visibility.
  • DII holdings increased (+0.44%), showing domestic institutional support.

Limitation

  • Quarterly PAT declined to 72.2 Cr. from 87.2 Cr., showing earnings pressure.
  • FII holdings decreased (-1.81%), signaling reduced foreign investor confidence.
  • P/E (40.0) is significantly higher than industry average (19.7), indicating overvaluation.
  • Volume participation slightly weaker compared to average, limiting breakout potential.

Company Negative News

  • Sequential decline in quarterly profits.
  • Reduced foreign institutional inflows (-1.81%).

Company Positive News

  • Strong quarterly profit variation (+111%).
  • Domestic institutional inflows (+0.44%) provide stability.

Industry

  • Industry P/E at 19.7 reflects moderate valuations across metals and recycling sector.
  • Sector supported by demand for sustainable materials and circular economy initiatives.

Conclusion

GRAVITA is consolidating with bullish bias, supported by strong fundamentals but facing valuation concerns and recent profit decline. Entry near 1,580–1,600 ₹ offers favorable risk-reward, while profit booking is advised near 1,680–1,700 ₹. Short-term outlook remains positive, with long-term prospects tied to earnings recovery and sector demand.

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