MAHSEAMLES - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental Analysis

Here’s a breakdown of key metrics and what they suggest

Metric Value Implication

Market Cap ₹9,269 Cr. Mid-cap; potential for growth with relative stability

Stock P/E 11.9 Undervalued vs. Industry PE of 23.8 — attractive for value investors

PEG Ratio 3.00 Overvalued on growth-adjusted basis; suggests limited upside

ROE / ROCE 12.9% / 16.6% Healthy returns, especially ROCE — efficient capital usage

Dividend Yield 1.44% Decent yield; adds passive income potential

Debt-to-Equity 0.00 Debt-free — strong financial health

EPS ₹58.0 Solid earnings; supports valuation

Book Value ₹473 Price-to-book ratio ~1.46 — reasonable valuation

Profit Growth (QoQ) +10.9% Positive momentum in earnings

📈 Technical & Trend Analysis

Current Price: ₹693

DMA 50 / DMA 200: ₹706 / ₹688 — trading near long-term average, indicating consolidation

RSI: 43.8 — nearing oversold zone, potential for bounce

MACD: -2.33 — bearish crossover, short-term weakness

Volume: Below average — lack of strong buying interest currently

✅ Is It a Good Long-Term Investment?

Yes — Mahindra Seamless shows strong fundamentals: low valuation, debt-free status, consistent profitability, and decent return ratios. However, the PEG ratio of 3.00 suggests the stock may be priced above its growth potential, so entry timing is crucial.

🎯 Ideal Entry Price Zone

Buy Zone: ₹660–₹680

Near 200 DMA and support levels

RSI suggests potential reversal

Offers margin of safety below current price

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 2–3 years minimum to capture long-term growth

Exit Strategy

Partial Exit near ₹800–₹820 (recent high) if valuations stretch or PEG remains elevated

Full Exit only if ROE/ROCE deteriorate or PEG rises further above 3.5

Reassess if RSI crosses 70 or MACD shows strong bearish divergence

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