M&M - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | M&M | Market Cap | 4,38,698 Cr. | Current Price | 3,528 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 31.3 | Book Value | 535 ₹ | Dividend Yield | 0.72 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,590 ₹ | DMA 200 | 3,394 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.44 % | PAT Qtr | 4,521 Cr. | PAT Prev Qtr | 3,564 Cr. |
| RSI | 47.2 | MACD | -61.8 | Volume | 56,84,609 | Avg Vol 1Wk | 44,39,428 |
| Low price | 2,360 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.91 | Debt to equity | 0.02 |
| 52w Index | 78.9 % | Qtr Profit Var | 17.7 % | EPS | 108 ₹ | Industry PE | 31.8 |
📊 Mahindra & Mahindra (M&M) shows strong fundamentals with moderate technical weakness for swing trading. The stock trades at ₹3,528, slightly below its 50 DMA (₹3,590) but above its 200 DMA (₹3,394), reflecting medium-term support. RSI at 47.2 indicates neutral momentum, while MACD at -61.8 signals bearish pressure. Valuation is fair with a P/E of 31.3 compared to industry average of 31.8, supported by robust ROE (20.8%) and ROCE (27.0%). EPS of ₹108 and low debt-to-equity (0.02) strengthen fundamentals. Despite FII selling, strong quarterly PAT growth (+17.7%) and DII buying provide confidence.
✅ Optimal Entry Price: Around ₹3,480–3,520 (near support zone, slightly below current price).
🚪 Exit Strategy (if already holding): Consider exit near ₹3,750–3,800 (resistance zone close to 52-week high). If price falls below ₹3,450, apply stop-loss to protect capital.
Positive
- 📈 Strong quarterly PAT growth (₹4,521 Cr. vs ₹3,564 Cr.).
- 💹 High ROE (20.8%) and ROCE (27.0%).
- ⚡ Low debt-to-equity ratio (0.02).
- 📊 EPS of ₹108 supports valuation strength.
- 🏦 DII holdings increased (+0.44%).
Limitation
- ⚠️ Trading below 50 DMA, showing short-term weakness.
- 📉 Negative MACD (-61.8) indicates bearish momentum.
- 📉 Dividend yield is modest (0.72%).
Company Negative News
- 📉 FII holdings decreased (-0.55%).
- ⚠️ Technical indicators show short-term weakness.
Company Positive News
- 📈 Strong PAT growth and profitability ratios.
- 🏦 DII accumulation signals domestic investor confidence.
Industry
- 🚗 Auto sector average PE is 31.8, M&M trades in line (31.3).
- 📊 Sector demand remains strong, supported by SUV and tractor sales growth.
Conclusion
⚖️ M&M is a strong candidate for swing trading with robust fundamentals and fair valuation. Entry near ₹3,480–3,520 offers favorable risk-reward, while exits should be targeted near ₹3,750–3,800. Despite short-term technical weakness and FII selling, strong profitability, low debt, and domestic investor support make M&M appealing for disciplined swing traders. Apply strict stop-loss below ₹3,450 to safeguard capital.