GRAVITA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GRAVITA | Market Cap | 10,630 Cr. | Current Price | 1,440 ₹ | High / Low | 2,170 ₹ |
| Stock P/E | 35.3 | Book Value | 231 ₹ | Dividend Yield | 0.44 % | ROCE | 21.4 % |
| ROE | 18.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,593 ₹ | DMA 200 | 1,698 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 72.2 Cr. | PAT Prev Qtr | 87.2 Cr. |
| RSI | 34.8 | MACD | -54.8 | Volume | 4,34,429 | Avg Vol 1Wk | 3,26,102 |
| Low price | 1,380 ₹ | High price | 2,170 ₹ | PEG Ratio | 0.53 | Debt to equity | 0.11 |
| 52w Index | 7.64 % | Qtr Profit Var | 111 % | EPS | 40.8 ₹ | Industry PE | 16.6 |
📊 Chart & Trend: GRAVITA is trading at ₹1,440, below both its 50 DMA (₹1,593) and 200 DMA (₹1,698), reflecting weakness. RSI at 34.8 suggests oversold conditions, while MACD (-54.8) confirms bearish momentum. Bollinger Bands show price near the lower band, signaling selling pressure but also potential for a rebound.
📈 Momentum Signals: Volume (4.34L) is higher than the 1-week average (3.26L), showing strong participation despite weakness. RSI below 35 indicates oversold conditions, hinting at possible accumulation zones.
💡 Entry Zone: ₹1,400–₹1,430 (support zone).
🚪 Exit Zone: ₹1,500–₹1,550 (resistance). A breakout above ₹1,550 could open room toward ₹1,600.
📌 Trend Status: The stock is currently reversing downward after correcting from its high of ₹2,170, with bearish undertones dominating near-term charts.
Positive
- Strong ROCE (21.4%) and ROE (18.5%) highlight efficient capital use.
- EPS of ₹40.8 reflects profitability.
- DII holdings increased (+1.10%), signaling foreign institutional support.
- Low debt-to-equity ratio (0.11) ensures financial stability.
Limitation
- Stock P/E (35.3) is higher than industry PE (16.6), suggesting stretched valuation.
- Quarterly PAT declined (₹72.2 Cr vs ₹87.2 Cr), showing earnings pressure.
- PEG ratio (0.53) indicates valuation concerns relative to growth trajectory.
Company Negative News
- Decline in DII holdings (-0.16%) signals reduced domestic institutional confidence.
- Stock corrected sharply from its 52-week high of ₹2,170, showing volatility.
Company Positive News
- Quarterly profit variation (+111%) highlights strong year-on-year earnings growth.
- EPS of ₹40.8 reflects profitability.
- Strong rally from ₹1,380 to ₹2,170 shows momentum strength.
Industry
- Recycling and metals sector benefits from sustainability demand and industrial growth.
- Industry PE (16.6) is much lower than GRAVITA’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning GRAVITA as a premium but cyclical play.
Conclusion
⚖️ GRAVITA is showing bearish reversal signals with RSI oversold and MACD negative. Fundamentals remain strong (ROCE/ROE, EPS growth, low debt), but valuation is stretched and earnings have weakened sequentially. Entry near ₹1,400–₹1,430 offers a margin of safety, with exits around ₹1,500–₹1,550. Long-term investors may hold for sector strength and sustainability tailwinds, while traders should wait for a reversal confirmation before momentum trades.
Selva, would you like me to extend this into a peer benchmarking overlay against recycling and metals players like Hindustan Zinc, Vedanta, and Nalco? That would highlight relative strength and sector rotation opportunities alongside GRAVITA.