M&M - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | M&M | Market Cap | 3,86,377 Cr. | Current Price | 3,106 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 25.2 | Book Value | 535 ₹ | Dividend Yield | 0.81 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,214 ₹ | DMA 200 | 3,322 ₹ |
| Chg in FII Hold | -1.26 % | Chg in DII Hold | 0.98 % | PAT Qtr | 4,288 Cr. | PAT Prev Qtr | 4,559 Cr. |
| RSI | 47.1 | MACD | -21.7 | Volume | 29,76,483 | Avg Vol 1Wk | 33,16,383 |
| Low price | 2,896 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.02 |
| 52w Index | 22.3 % | Qtr Profit Var | 41.6 % | EPS | 115 ₹ | Industry PE | 27.7 |
M&M shows strong fundamentals but weak technical momentum for swing trading. The RSI at 47.1 is neutral, while MACD is negative, indicating bearish pressure. Despite this, the company has excellent ROCE (27.0%) and ROE (20.8%), very low debt-to-equity (0.02), and a PEG ratio of 0.73, suggesting undervaluation relative to growth. Institutional activity is mixed, with FII holdings declining but DII holdings increasing.
✅ Optimal Entry Price: Around ₹2,950 – ₹3,000 (near support zone below DMA levels).
📈 Exit Strategy if Holding: Consider exiting around ₹3,300 – ₹3,350 (near 200 DMA resistance).
👍 Positive
- Strong ROCE (27.0%) and ROE (20.8%) show efficient capital use.
- Debt-to-equity ratio of 0.02 ensures financial stability.
- PEG ratio of 0.73 indicates undervaluation relative to growth.
- EPS of ₹115 reflects strong earnings power.
⚠️ Limitation
- MACD negative, confirming weak momentum.
- RSI neutral, not showing strong buying signals.
- Trading volume below weekly average, suggesting weaker participation.
- Dividend yield is modest at 0.81%.
📰 Company Negative News
- FII holdings declined (-1.26%), showing reduced foreign investor confidence.
- PAT declined slightly compared to previous quarter (₹4,559 Cr to ₹4,288 Cr).
🌟 Company Positive News
- Quarterly profit variation of +41.6% indicates strong growth momentum.
- DII holdings increased (+0.98%), reflecting domestic institutional support.
🏭 Industry
- Industry PE at 27.7, slightly higher than M&M’s PE of 25.2, suggesting fair valuation.
- Automobile sector benefits from rising demand and infrastructure growth but remains cyclical.
✅ Conclusion
M&M is fundamentally strong but technically weak at present. It is a fair candidate for swing trading if entered near ₹2,950 – ₹3,000, with an exit target around ₹3,300 – ₹3,350. Traders should monitor volume recovery and MACD crossover before aggressive entry.