MAHABANK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📈 Bank of Maharashtra is a solid swing trade candidate with strong fundamentals, fair valuation, and stable technical indicators. Entry near ₹57 is optimal. If already held, consider exiting around ₹61–₹63.

📈 Positive

• 📊 ROE of 22.9% and EPS of ₹7.96 reflect strong profitability.
• 📈 MACD at 0.84 and RSI at 52.0 indicate neutral-to-bullish momentum.
• 📈 Trading above DMA 50 (₹57.0) and DMA 200 (₹54.8) confirms uptrend support.
• 💸 Dividend Yield of 2.57% adds to total return potential.
• 📉 Low P/E of 7.34 vs industry average of 8.08 suggests undervaluation.
• 📈 FII holding increased by 0.46%, showing rising foreign investor confidence.

⚠️ Limitation

• 📉 ROCE of 5.78% is modest for a large-cap bank.
• 📉 DII holding declined by 0.34%, indicating cautious domestic sentiment.
• 📉 Debt-to-equity ratio of 10.6 is high, though typical for banks.
• 📉 Volume below average (1.57 Cr. vs 2.14 Cr.), suggesting reduced participation.

📉 Company Negative News

• 📉 Analysts flagged concerns over limited upside near 52-week high of ₹61.4.

📈 Company Positive News

• 📈 Bank of Maharashtra posted a 23.1% quarterly profit growth, driven by strong loan book expansion.
• 📈 Management expects continued improvement in asset quality and net interest margins.

🏦 Industry

• 🏦 PSU banks are performing well amid rising credit demand and improved asset quality.
• 📊 Industry P/E of 8.08 reflects conservative valuation norms across the sector.

✅ Conclusion

• 📈 Bank of Maharashtra is a strong swing trade candidate with bullish technicals and attractive valuation.
• 📉 Optimal entry price: ₹57–₹58 (near DMA 50 and support).
• 📈 Exit target: ₹61–₹63 (near recent highs and resistance).
• 📌 Monitor RSI for signs of breakout and volume surge for confirmation before entry.

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