GUJGASLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | GUJGASLTD | Market Cap | 24,676 Cr. | Current Price | 359 ₹ | High / Low | 509 ₹ |
| Stock P/E | 21.3 | Book Value | 126 ₹ | Dividend Yield | 1.62 % | ROCE | 19.6 % |
| ROE | 14.3 % | Face Value | 2.00 ₹ | DMA 50 | 401 ₹ | DMA 200 | 424 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.09 % | PAT Qtr | 266 Cr. | PAT Prev Qtr | 281 Cr. |
| RSI | 32.1 | MACD | -12.6 | Volume | 6,49,278 | Avg Vol 1Wk | 54,98,359 |
| Low price | 355 ₹ | High price | 509 ₹ | PEG Ratio | -5.54 | Debt to equity | 0.02 |
| 52w Index | 2.44 % | Qtr Profit Var | 19.8 % | EPS | 16.9 ₹ | Industry PE | 14.4 |
📊 Chart & Trend: GUJGASLTD is trading at ₹359, below both its 50 DMA (₹401) and 200 DMA (₹424), reflecting weakness. RSI at 32.1 suggests oversold conditions, while MACD (-12.6) confirms bearish momentum. Bollinger Bands show price near the lower band, signaling selling pressure but also potential for a rebound.
📈 Momentum Signals: Volume (6.49L) is significantly lower than the 1-week average (54.9L), showing reduced participation. RSI below 35 indicates oversold conditions, hinting at possible accumulation zones.
💡 Entry Zone: ₹350–₹360 (support zone).
🚪 Exit Zone: ₹390–₹405 (resistance). A breakout above ₹405 could open room toward ₹430.
📌 Trend Status: The stock is currently reversing downward after correcting from its high of ₹509, with bearish undertones dominating near-term charts.
Positive
- ROCE (19.6%) and ROE (14.3%) highlight operational efficiency.
- EPS of ₹16.9 reflects profitability.
- Dividend yield of 1.62% adds income appeal.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII holdings increased (+0.12%) and DII holdings (+0.09%) show institutional support.
Limitation
- Stock P/E (21.3) is higher than industry PE (14.4), suggesting stretched valuation.
- Quarterly PAT declined (₹266 Cr vs ₹281 Cr), showing earnings pressure.
- PEG ratio (-5.54) indicates valuation concerns relative to growth trajectory.
- Weak trading volumes compared to weekly average reduce conviction in momentum.
Company Negative News
- Sequential PAT decline highlights earnings weakness.
- Stock corrected sharply from its 52-week high of ₹509, showing volatility.
Company Positive News
- Quarterly profit variation (+19.8%) supports year-on-year earnings strength.
- Strong institutional support from both FIIs and DIIs.
- Low debt-to-equity ratio ensures balance sheet stability.
Industry
- City gas distribution sector benefits from rising demand for clean energy.
- Industry PE (14.4) is lower than GUJGASLTD’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning GUJGASLTD as a premium but cyclical play.
Conclusion
⚖️ GUJGASLTD is showing bearish reversal signals with RSI oversold and MACD negative. Fundamentals remain strong (ROCE/ROE, dividend yield, low debt), but valuation is stretched and earnings have weakened sequentially. Entry near ₹350–₹360 offers a margin of safety, with exits around ₹390–₹405. Long-term investors may hold for sector strength, 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 city gas distribution players like Indraprastha Gas, Mahanagar Gas, and Adani Total Gas? That would highlight relative strength and sector rotation opportunities alongside GUJGASLTD.