M&M - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | M&M | Market Cap | 3,78,716 Cr. | Current Price | 3,045 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 24.6 | Book Value | 535 ₹ | Dividend Yield | 0.83 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,394 ₹ | DMA 200 | 3,386 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.44 % | PAT Qtr | 4,288 Cr. | PAT Prev Qtr | 4,559 Cr. |
| RSI | 38.3 | MACD | -116 | Volume | 33,56,337 | Avg Vol 1Wk | 48,76,240 |
| Low price | 2,360 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.72 | Debt to equity | 0.02 |
| 52w Index | 46.3 % | Qtr Profit Var | 41.6 % | EPS | 115 ₹ | Industry PE | 28.2 |
📊 Mahindra & Mahindra (M&M) shows strong fundamentals but weak technicals for swing trading. The RSI at 38.3 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-116) reflects bearish momentum, and the stock is trading below both 50 DMA (3,394 ₹) and 200 DMA (3,386 ₹), showing short-term weakness. With a P/E of 24.6 compared to the industry average of 28.2, the stock appears fairly valued. Overall, this is a good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 3,000–3,050 ₹ (near recent support and oversold zone).
📈 Exit Strategy (if already holding): Consider exiting near 3,350–3,400 ₹ (DMA resistance zone) unless momentum strengthens further.
✅ Positive
- Quarterly PAT remains strong (4,288 Cr. vs 4,559 Cr.).
- EPS of 115 ₹ reflects solid earnings power.
- ROCE (27.0%) and ROE (20.8%) are excellent, showing efficient capital use.
- PEG ratio of 0.72 suggests undervaluation relative to growth.
- Debt-to-equity ratio of 0.02 indicates negligible leverage.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- Bearish technical indicators (MACD negative, RSI oversold).
- Dividend yield is modest at 0.83%.
- Volumes below weekly average, showing weaker participation.
📉 Company Negative News
- FII holdings decreased (-0.55%), showing reduced foreign investor confidence.
- Quarterly PAT slightly declined compared to previous quarter.
📈 Company Positive News
- DII holdings increased (+0.44%), showing domestic investor support.
- Strong quarterly profit variation (41.6%).
- Stock remains well above 52-week low (2,360 ₹ to 3,045 ₹).
🏭 Industry
- Industry PE is 28.2, slightly higher than M&M’s 24.6, suggesting fair valuation compared to peers.
- Automobile sector is cyclical, benefiting from demand recovery but sensitive to raw material costs and interest rates.
🔎 Conclusion
M&M is a good swing trade candidate with strong fundamentals and fair valuation. Entry near 3,000–3,050 ₹ offers a favorable risk-reward setup, while exits near 3,350–3,400 ₹ capture upside potential. Weak technicals and declining foreign investor confidence warrant caution, but strong profitability and efficiency make this suitable for tactical short-term trades.