MAHABANK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | MAHABANK | Market Cap | 50,351 Cr. | Current Price | 65.4 ₹ | High / Low | 67.8 ₹ |
| Stock P/E | 7.74 | Book Value | 43.3 ₹ | Dividend Yield | 2.30 % | ROCE | 5.78 % |
| ROE | 22.9 % | Face Value | 10.0 ₹ | DMA 50 | 61.8 ₹ | DMA 200 | 57.6 ₹ |
| Chg in FII Hold | 2.57 % | Chg in DII Hold | 3.44 % | PAT Qtr | 1,779 Cr. | PAT Prev Qtr | 1,633 Cr. |
| RSI | 56.9 | MACD | 0.72 | Volume | 1,49,74,263 | Avg Vol 1Wk | 1,99,63,826 |
| Low price | 38.1 ₹ | High price | 67.8 ₹ | PEG Ratio | 0.11 | Debt to equity | 10.6 |
| 52w Index | 91.9 % | Qtr Profit Var | 26.5 % | EPS | 8.45 ₹ | Industry PE | 7.88 |
📊 MAHABANK (₹65.4) shows strong swing trade potential. The stock trades above both its 50 DMA (₹61.8) and 200 DMA (₹57.6), supported by RSI at 56.9 and positive MACD (0.72), indicating bullish momentum. Fundamentals are attractive with low P/E (7.74 vs industry 7.88), strong ROE (22.9%), and PAT growth (₹1,779 Cr. vs ₹1,633 Cr.). Dividend yield at 2.30% adds investor appeal. Both FII (+2.57%) and DII (+3.44%) holdings increased, reflecting strong institutional confidence. Overall, the stock is undervalued and technically positioned for a swing trade opportunity.
💡 Optimal Entry Price: ₹63–₹64 (near support zone).
💡 Exit Strategy: If already holding, consider booking profits near ₹67–₹68 unless momentum strengthens further.
✅ Positive
- Low P/E (7.74) close to industry average, indicating fair valuation.
- Strong ROE (22.9%) and EPS ₹8.45.
- Dividend yield 2.30% supports investor confidence.
- Quarterly PAT growth (₹1,779 Cr. vs ₹1,633 Cr.).
- FII (+2.57%) and DII (+3.44%) holdings increased, showing strong institutional support.
⚠️ Limitation
- ROCE relatively low at 5.78%, limiting operational efficiency.
- Debt-to-equity ratio high (10.6), typical for banks but adds leverage risk.
- Trading volume below 1-week average, indicating reduced participation.
📉 Company Negative News
- High leverage remains a structural concern in banking operations.
- Lower ROCE compared to peers reduces efficiency appeal.
📈 Company Positive News
- Consistent quarterly profit growth and strong EPS.
- Dividend yield adds stability for investors.
- Institutional confidence reflected in increased FII and DII holdings.
🏭 Industry
- Industry PE ~7.88, MAHABANK trades fairly valued.
- Banking sector remains resilient with steady credit demand and profitability.
🔎 Conclusion
MAHABANK is a strong candidate for swing trading with undervaluation, improving fundamentals, and bullish technicals. Entry near ₹63–₹64 with exit around ₹67–₹68 is advisable. Suitable for traders seeking moderate upside, but strict stop-loss discipline is recommended due to leverage risks and relatively low ROCE.