3MINDIA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.6
| Stock Code | 3MINDIA | Market Cap | 37,165 Cr. | Current Price | 32,980 ₹ | High / Low | 38,300 ₹ |
| Stock P/E | 113 | Book Value | 1,430 ₹ | Dividend Yield | 0.49 % | ROCE | 38.2 % |
| ROE | 23.8 % | Face Value | 10.0 ₹ | DMA 50 | 34,714 ₹ | DMA 200 | 33,136 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | 0.27 % | PAT Qtr | -113 Cr. | PAT Prev Qtr | 191 Cr. |
| RSI | 38.4 | MACD | -714 | Volume | 7,832 | Avg Vol 1Wk | 7,324 |
| Low price | 26,800 ₹ | High price | 38,300 ₹ | PEG Ratio | 5.26 | Debt to equity | 0.06 |
| 52w Index | 53.7 % | Qtr Profit Var | -199 % | EPS | 336 ₹ | Industry PE | 23.4 |
📊 Based on the given parameters, 3M India shows strong fundamentals (high ROCE and ROE, low debt), but the current technical setup and earnings trend make it a weak candidate for swing trading. The RSI (38.4) and MACD (-714) indicate bearish momentum, while the latest quarterly profit turned negative (-113 Cr. vs. +191 Cr. previously). The valuation is also stretched with a P/E of 113 compared to the industry average of 23.4.
💡 Optimal Entry Price: Around 30,000–31,000 ₹ (closer to support levels and below DMA 200).
🚪 Exit Strategy (if already holding): Consider exiting near 34,000–34,500 ₹ resistance zone unless earnings momentum improves.
✅ Positive
- Strong ROCE (38.2%) and ROE (23.8%) indicate efficient capital use.
- Low debt-to-equity ratio (0.06) shows financial stability.
- Large market cap (37,165 Cr.) ensures liquidity and institutional interest.
⚠️ Limitation
- High P/E (113) compared to industry average (23.4), suggesting overvaluation.
- Weak technical indicators (RSI below 40, MACD negative).
- Dividend yield is low (0.49%), offering limited income support.
📉 Company Negative News
- Quarterly profit turned negative (-113 Cr.), a sharp decline from +191 Cr.
- Quarterly profit variation at -199%, showing severe earnings volatility.
📈 Company Positive News
- EPS remains strong at 336 ₹ despite recent profit decline.
- FII (+0.07%) and DII (+0.27%) holdings increased, showing institutional confidence.
🏭 Industry
- Industry P/E is 23.4, far below the company’s valuation, highlighting premium pricing.
- Sector growth is steady, but peers trade at more reasonable multiples.
🔎 Conclusion
3M India is fundamentally strong but currently overvalued and facing weak technical momentum. It is not an ideal swing trade candidate unless it corrects closer to support (~30,000–31,000 ₹). If already holding, consider exiting near 34,000–34,500 ₹ to avoid downside risk.