3MINDIA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | 3MINDIA | Market Cap | 37,189 Cr. | Current Price | 32,943 ₹ | High / Low | 38,300 ₹ |
| Stock P/E | 68.6 | Book Value | 1,570 ₹ | Dividend Yield | 0.48 % | ROCE | 50.0 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 32,391 ₹ | DMA 200 | 32,617 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | -0.05 % | PAT Qtr | 185 Cr. | PAT Prev Qtr | -113 Cr. |
| RSI | 59.0 | MACD | 120 | Volume | 2,933 | Avg Vol 1Wk | 3,568 |
| Low price | 28,275 ₹ | High price | 38,300 ₹ | PEG Ratio | 7.41 | Debt to equity | 0.10 |
| 52w Index | 46.6 % | Qtr Profit Var | 160 % | EPS | 464 ₹ | Industry PE | 18.9 |
3M India shows strong fundamentals with excellent ROCE (50%) and ROE (30%), supported by low debt (0.10). Technical indicators (RSI 59, MACD positive, price above 50DMA and 200DMA) suggest steady bullish momentum. However, the high P/E (68.6 vs industry 18.9) indicates overvaluation. The optimal entry price is near 32,300–32,400 ₹ (DMA support). If already holding, consider exiting near 37,800–38,000 ₹, close to recent highs, unless momentum continues strongly.
✅ Positive
- 📈 Strong ROCE (50%) and ROE (30%), showing efficient capital use.
- 💹 Price trading above both 50DMA and 200DMA, confirming bullish trend.
- 📊 Quarterly PAT recovery (185 Cr vs -113 Cr previous quarter).
- 💰 Very low debt-to-equity ratio (0.10), reducing financial risk.
⚠️ Limitation
- 📉 Very high P/E (68.6) compared to industry average (18.9).
- 📊 Dividend yield low at 0.48%, limiting income potential.
- 📉 PEG ratio (7.41) indicates expensive valuation relative to growth.
📰 Company Negative News
- 📉 Slight decline in DII holding (-0.05%), showing reduced domestic institutional interest.
🌟 Company Positive News
- 📈 Strong quarterly profit turnaround (from loss to 185 Cr profit).
- 📊 Marginal increase in FII holding (+0.02%), showing foreign investor confidence.
🏭 Industry
- 📊 Industry PE at 18.9, much lower than company PE, highlighting overvaluation risk.
- 📈 Industrial and manufacturing sector showing stable demand but valuations stretched.
📌 Conclusion
3M India is fundamentally strong with excellent efficiency metrics and low debt, making it attractive for short-term swing trades. Entry near support (32,300–32,400 ₹) and exit near resistance (37,800–38,000 ₹) is advisable. Long-term investors may find valuations expensive despite strong fundamentals.
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