M&M - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for Mahindra & Mahindra (M&M) based on the provided parameters
Swing Trade Rating: 4.0
| Stock Code | M&M | Market Cap | 3,90,002 Cr. | Current Price | 3,136 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 24.0 | Book Value | 598 ₹ | Dividend Yield | 1.05 % | ROCE | 31.1 % |
| ROE | 23.9 % | Face Value | 5.00 ₹ | DMA 50 | 3,123 ₹ | DMA 200 | 3,262 ₹ |
| Chg in FII Hold | -1.26 % | Chg in DII Hold | 0.98 % | PAT Qtr | 3,811 Cr. | PAT Prev Qtr | 4,288 Cr. |
| RSI | 55.3 | MACD | -5.51 | Volume | 26,94,422 | Avg Vol 1Wk | 37,85,669 |
| Low price | 2,896 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.84 | Debt to equity | 0.02 |
| 52w Index | 25.5 % | Qtr Profit Var | 29.0 % | EPS | 126 ₹ | Industry PE | 29.2 |
📊 M&M is trading at ₹3,136, near its 50 DMA (₹3,123) but below its 200 DMA (₹3,262), reflecting short-term consolidation. RSI at 55.3 indicates neutral momentum, while MACD (-5.51) shows mild bearish undertone. Volumes (26.9L) are below weekly averages (37.8L), suggesting reduced participation. Valuations are fair (P/E 24.0 vs industry 29.2), supported by EPS of ₹126. Fundamentals remain strong with ROCE (31.1%) and ROE (23.9%), though quarterly PAT declined (₹4,288 Cr → ₹3,811 Cr). Debt-to-equity is very low at 0.02, ensuring financial stability.
💡 Optimal Entry: ₹3,100–₹3,150 (near 50 DMA support zone)
🚪 Exit if Holding: Profit-taking zone around ₹3,300–₹3,350; Stop-loss below ₹3,080
✅ Positive
- Strong ROCE (31.1%) and ROE (23.9%)
- Low debt-to-equity ratio (0.02)
- Valuation discount compared to industry PE (24.0 vs 29.2)
- DII holdings increased (+0.98%)
⚠️ Limitation
- Trading below 200 DMA (₹3,262)
- Quarterly PAT decline (₹4,288 Cr → ₹3,811 Cr)
- MACD (-5.51) indicates mild bearish bias
- FII holdings decreased (-1.26%)
📉 Company Negative News
- Profit decline quarter-on-quarter
- Reduced foreign institutional participation
📈 Company Positive News
- Strong fundamentals with consistent earnings power
- Domestic institutional inflows (+0.98%)
🏭 Industry
- Auto sector PE at 29.2, M&M trades at a discount
- Sector outlook resilient with cyclical demand recovery
🔎 Conclusion
M&M is a solid candidate for swing trading with strong fundamentals and attractive valuation. Entry near ₹3,100–₹3,150 offers a favorable setup, while exits should be considered around ₹3,300–₹3,350. Traders should monitor RSI and price action around DMA levels to time trades effectively.
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