GRSE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | GRSE | Market Cap | 28,877 Cr. | Current Price | 2,522 ₹ | High / Low | 3,538 ₹ |
| Stock P/E | 41.9 | Book Value | 200 ₹ | Dividend Yield | 0.55 % | ROCE | 36.6 % |
| ROE | 27.6 % | Face Value | 10.0 ₹ | DMA 50 | 2,483 ₹ | DMA 200 | 2,417 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | -0.35 % | PAT Qtr | 171 Cr. | PAT Prev Qtr | 154 Cr. |
| RSI | 53.3 | MACD | 19.7 | Volume | 48,44,682 | Avg Vol 1Wk | 37,67,252 |
| Low price | 1,180 ₹ | High price | 3,538 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.01 |
| 52w Index | 56.9 % | Qtr Profit Var | 73.9 % | EPS | 60.2 ₹ | Industry PE | 56.2 |
📈 Chart & Trend Analysis: GRSE is trading at ₹2,522, above both its 50 DMA (₹2,483) and 200 DMA (₹2,417), indicating a bullish bias. The RSI at 53.3 suggests neutral momentum, neither overbought nor oversold. MACD at 19.7 is positive, supporting mild upward momentum. Bollinger Bands show price near mid-range, suggesting consolidation with potential breakout if volume sustains.
📊 Volume Trends: Current volume (48.4 lakh) is higher than the 1-week average (37.6 lakh), signaling active participation and potential short-term momentum.
🎯 Entry Zone: ₹2,450 – ₹2,500 (near support and DMA levels)
🚪 Exit Zone: ₹2,650 – ₹2,700 (near resistance trendline and profit-taking zone)
🔎 Trend Status: Consolidating with bullish bias — price is holding above key moving averages but needs stronger momentum for a breakout toward ₹2,700+.
Positive ✅
- Strong ROCE (36.6%) and ROE (27.6%) indicate efficient capital use.
- Debt-to-equity ratio of 0.01 shows negligible leverage risk.
- Quarterly PAT growth (171 Cr vs 154 Cr) reflects earnings momentum.
- EPS of ₹60.2 supports valuation strength.
Limitation ⚠️
- High P/E of 41.9 compared to book value (₹200) may limit upside.
- FII and DII holding reduced (-0.30% and -0.35%), showing cautious institutional sentiment.
- Dividend yield at 0.55% is relatively low.
Company Negative News 📉
- Recent decline in institutional holdings suggests profit booking or cautious outlook.
Company Positive News 📈
- Strong quarterly profit growth (73.9% YoY variation).
- Consistent order inflows in defense sector boosting visibility.
Industry 🌐
- Industry P/E at 56.2 indicates sector is richly valued, supporting premium multiples.
- Defense manufacturing sector enjoys strong government support and long-term contracts.
Conclusion 📝
GRSE is consolidating above key moving averages with neutral RSI and positive MACD. Entry near ₹2,450–₹2,500 offers margin of safety, while exits around ₹2,650–₹2,700 provide profit-taking opportunities. Fundamentally strong with low debt and high ROCE, but valuations remain stretched. Short-term traders may play the consolidation breakout, while long-term investors can hold for compounding in defense sector growth.
Would you like me to also prepare a basket overlay with peer benchmarking (other defense sector stocks like HAL, BEL, Cochin Shipyard) so you can compare GRSE’s momentum against its peers? That way, we can refine entry/exit zones with sector rotation logic.