M&M - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.5

📈 Optimal Entry Price: ₹3,500–₹3,540 (near 50 DMA and RSI support)

📉 Exit Strategy (if holding): ₹3,700–₹3,720 (near 52-week high and resistance)

🔷 Positive

• 📊 Strong quarterly PAT growth: ₹4,521 Cr. vs ₹3,564 Cr. (QoQ growth of 27%).
• 📈 MACD at 17.5: Indicates bullish momentum.
• 📉 PEG ratio of 0.93: Suggests fair valuation relative to growth.
• 📈 ROCE (27%) and ROE (20.8%): Reflect excellent capital efficiency.
• 📉 Debt-to-equity ratio of 0.02: Virtually debt-free, financially sound.
• 📈 Trading above DMA 50 and 200: Strong technical trend with volume support.

⚠️ Limitation

• 📉 Stock P/E of 31.8: Slightly below industry average (34.4), but still high.
• 📉 Dividend yield at 0.71%: Low for income-seeking investors.
• 📉 FII holding dropped by 0.49%: May reflect cautious foreign sentiment.

📉 Company Negative News

• 📰 Operating margins in the auto segment may remain under pressure due to rising EV share and festive discounts

  Mint

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📈 Company Positive News

• 🚗 M&M reported a 28% YoY PAT surge to ₹3,673 Cr. and 22% revenue growth in Q2FY26

  Business Today

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• 📈 SUV and tractor segments showed strong volume growth (16% YoY), with robust rural demand post-festive season

  ET Auto

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• 📊 Financial services arm delivered 45% PAT growth, maintaining asset quality

  Business Today

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🚙 Industry

• 🏭 M&M operates in the auto and farm equipment sector, which is benefiting from rural demand and EV adoption.
• 📈 Industry P/E of 34.4 suggests M&M is fairly valued with room for upside if growth sustains.

🧾 Conclusion

• ✅ M&M is a strong swing trade candidate with solid fundamentals, technical strength, and sector momentum.
• 📌 Entry near ₹3,500–₹3,540 offers a favorable setup with support from DMA and RSI levels.
• 🚪 If already holding, consider exiting near ₹3,700–₹3,720, aligning with resistance and 52-week high.

Sources

Livemint – Q2 preview and margin outlook

Mint

Economic Times – SUV demand and inventory update

ET Auto

Business Today – Q2 results highlights

Business Today

I can also compare M&M with another auto stock like Tata Motors or Maruti to help refine your swing strategy.