MAHABANK - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | MAHABANK | Market Cap | 69,340 Cr. | Current Price | 90.1 ₹ | High / Low | 91.2 ₹ |
| Stock P/E | 9.88 | Book Value | 43.0 ₹ | Dividend Yield | 2.44 % | ROCE | 6.03 % |
| ROE | 22.8 % | Face Value | 10.0 ₹ | DMA 50 | 79.7 ₹ | DMA 200 | 68.4 ₹ |
| Chg in FII Hold | 0.63 % | Chg in DII Hold | 0.43 % | PAT Qtr | 2,014 Cr. | PAT Prev Qtr | 1,779 Cr. |
| RSI | 70.6 | MACD | 3.07 | Volume | 1,47,19,042 | Avg Vol 1Wk | 2,13,58,545 |
| Low price | 51.7 ₹ | High price | 91.2 ₹ | PEG Ratio | 0.25 | Debt to equity | 11.6 |
| 52w Index | 97.2 % | Qtr Profit Var | 34.9 % | EPS | 9.13 ₹ | Industry PE | 8.61 |
MAHABANK shows good potential for swing trading. The valuation is fair with a P/E of 9.88 compared to the industry average of 8.61, and the PEG ratio (0.25) suggests strong valuation relative to growth. Fundamentals are mixed: ROE at 22.8% is strong, though ROCE at 6.03% is modest. Debt-to-equity at 11.6 is high, typical for banks. Technical indicators are supportive: RSI at 70.6 indicates overbought momentum, and MACD at 3.07 shows bullish strength. The stock is trading well above its 50 DMA (79.7 ₹) and 200 DMA (68.4 ₹), showing strong trend support. PAT growth (2,014 Cr vs 1,779 Cr) is encouraging, and EPS at 9.13 ₹ provides a solid earnings base. Dividend yield at 2.44% adds shareholder value.
🔑 Optimal Entry Price: 85–88 ₹ (near 50 DMA support).
📤 Exit Strategy if Holding: Consider exiting near 90–92 ₹ resistance unless momentum continues strongly.
✅ Positive
- 📈 Attractive P/E ratio compared to industry peers.
- 📊 EPS at 9.13 ₹ indicates solid earnings base.
- 📉 FII holdings increased (+0.63%) and DII holdings increased (+0.43%), showing institutional confidence.
- 📈 Technicals show bullish momentum (RSI and MACD positive).
- 📊 Dividend yield (2.44%) adds shareholder value.
⚠️ Limitation
- 📉 ROCE is modest at 6.03%.
- 📉 High debt-to-equity ratio (11.6), typical for banks but adds leverage risk.
- 📉 RSI above 70 suggests overbought conditions, raising risk of pullback.
📰 Company Negative News
- 📉 Overbought technical condition may trigger short-term correction.
- ⚠️ High leverage increases financial risk exposure.
🌟 Company Positive News
- 📈 Strong quarterly PAT growth (2,014 Cr vs 1,779 Cr).
- 📊 EPS remains robust at 9.13 ₹.
- 📉 Institutional confidence with increased FII and DII stakes.
- 📈 Stock trading above DMA levels shows strength.
🏭 Industry
- 📊 Industry P/E at 8.61, slightly lower than MAHABANK’s 9.88, showing relative fair valuation.
- 📈 Banking sector benefits from rising credit demand and financial inclusion.
- ⚠️ Competitive pressures and regulatory risks may limit margin expansion.
📌 Conclusion
MAHABANK is a moderately strong swing trade candidate. Entry is best near 85–88 ₹ with cautious exit around 90–92 ₹. Fundamentals are stable, technicals show bullish momentum, and valuation is fair. Suitable for traders seeking short-term gains with controlled risk, though overbought conditions warrant strict stop-loss discipline.