Graphite India Ltd.
NSE: GRAPHITEGraphite India Ltd.: A 30-second snapshot
Graphite India (GRAPHITE) is an industrial graphite electrode manufacturer trading at ₹774.45, up 70.55% over the past year and within 3.5% of its 52-week high. The trailing PE stands at 45.91 versus a forward PE of 17.03, reflecting a large embedded earnings-recovery expectation; debt-to-equity is 4.572 with FCF positive in only 2 of tracked years and a quality score of 49/100 among 6 sector peers.
P/E
45.9
Forward P/E
17.0
ROE
—
Debt / Equity
4.57
Profit Margin
+12.2%
Div. Yield
+1.4%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
37/100
News
8 headlines · 1 positive · 0 negative
Graphite India Increases Stake in GrafTech International - Chemical Industry Digest
Chemical Industry Digest
Graphite India Raises GrafTech Stake to 9.79%, Cumulative Investment at INR 230.38 Crores - scanx.trade
scanx.trade
Graphite India increases stake in GrafTech International - Indian Chemical News
Indian Chemical News
Trendline breakout and strong support zone signal rally in Graphite India: Shivangi Sarda - The Economic Times
The Economic Times
Stock Radar: Graphite India stock hits fresh record high in May 2026 – time to buy or book profits? - The Economic Times
The Economic Times
Recent context
- ·Graphite India raised its stake in GrafTech International to 9.79% with a cumulative investment of INR 230.38 crore, adding cross-border equity concentration to the balance sheet at a time when domestic D/E is already elevated.
- ·An Economic Times report noted the stock hit a fresh record high in May 2026, with news coverage referencing trendline technical observations by a named analyst (Shivangi Sarda, ET); the company has not disclosed any operating earnings update in the same period.
- ·News sentiment across 8 tracked items is neutral (7 neutral, 1 positive, 0 negative), driven almost entirely by the GrafTech stake disclosures rather than operating or financial news.
Strengths
- +Revenue has grown at a 5-year CAGR of 22.8%, indicating sustained top-line expansion over the medium term.
- +Price is above both the 50-DMA (₹674.28) and 200-DMA (₹604.58), with RSI at 66.45 — the stock is in an established uptrend without yet signalling extreme overbought conditions.
- +Debt trend is classified as falling, suggesting active balance-sheet reduction despite the elevated absolute D/E of 4.572.
- +At ₹774.45, GRAPHITE trades at a trailing PE of 45.91 — the second-lowest among its 6 tracked infrastructure-sector peers, which range up to 108.51 (CGPOWER).
Weaknesses
- −Debt-to-equity of 4.572 is materially elevated for an industrial manufacturer; FCF has been positive in only 2 of available tracked years and the persistence consistency score is 0, with ROE above 15% in 0 of tracked years.
- −ROE data is unavailable and 5-year earnings growth figures are missing, leaving a significant gap in assessing the quality of historical profitability; quality score of 49/100 places the company second-lowest among tracked peers.
- −The trailing PE of 45.91 versus a forward PE of 17.03 embeds a large earnings-step-up assumption; failure to deliver that recovery would expose the valuation to a de-rating.
- −Analyst coverage comprises only 3 analysts with no consensus rating available, providing limited sell-side visibility into the earnings outlook.
Open questions
- ?Does the falling debt trend reflect genuine operational deleveraging, or is it being offset by the GrafTech equity investment that sits outside the core D/E calculation?
- ?How dependent is the forward PE compression (45.91 → 17.03) on a single year of earnings normalisation in the graphite electrode cycle, and how volatile have electrode prices historically been?
- ?Given that ROE has been above 15% in 0 of tracked years and FCF positive in only 2, what structural change — in pricing, volumes, or costs — underpins the earnings recovery the valuation implies?
- ?The stock is near a 52-week high with limited sell-side coverage (3 analysts); how does price discovery occur in a thinly covered name during a cyclical upcycle, and what happens to liquidity and price discovery on the downside?
Peer comparison: Infrastructure
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GRAPHITE | Graphite India Ltd.You're viewing | 45.9 | — | 49 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹774.45
SMA 50
₹674.28
SMA 200
₹604.58
RSI (14)
66.5 (neutral)
From 52w high
-3.5%
1Y return
+70.5%
3M return
+16.1%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 4.572 is materially elevated for a manufacturing/industrial company. FCF has been positive in only 2 of available tracked years and the persistence consistency score is 0 (ROE above 15% in 0 of tracked years), indicating weak structural cash-generation and return quality despite a 12.18% profit margin.
- highROE is unavailable and 5-year earnings growth data is missing. Quality score of 49/100 places GRAPHITE second-lowest among 6 tracked sector peers (BEL 57, GRAPHITE 49, ABB 47, CGPOWER 45, CUMMINSIND 24, LT 26).
- mediumTrailing PE of 45.91 versus forward PE of 17.03 implies the market is pricing in a significant earnings step-up. If that earnings recovery does not materialise, the stock is exposed to a material trailing-multiple de-rating.
- mediumRecent news flow is concentrated entirely around the GrafTech International stake build (cumulative investment INR 230.38 crore, stake now 9.79%). This capital deployment adds cross-border equity concentration risk. News sample is limited to 8 items, constraining sentiment reliability.
- lowAnalyst coverage is sparse at 3 analysts and no mean rating score is available. Peer priceChange1Y data is missing for all 5 peers and ROE is absent for 4 of 5, limiting like-for-like sector comparison.
Cross-section contradictions
- Trailing PE of 45.91 is the second-lowest in the peer group (BEL 51.93, ABB 86.81, CGPOWER 108.51, CUMMINSIND 66.52, LT 33.41), yet quality score of 49 is also second-lowest — the relative PE discount co-exists with below-median operating quality rather than premium fundamentals.
- Stock is up 70.55% over 1 year and trades near a 52-week high (drawdown only -3.48%), above both 50-DMA (674.28) and 200-DMA (604.58), yet FCF has been positive in only 2 of tracked years and consistency score is 0 — price momentum is running well ahead of demonstrated earnings and cash-flow durability.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days