MANAPPURAM - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.9

📊 Manappuram Finance shows strong momentum and decent fundamentals, making it a fairly good candidate for swing trading. The stock is trading above both its 50 DMA (280 ₹) and 200 DMA (259 ₹), confirming bullish strength. RSI at 57.2 indicates healthy momentum without being overbought, and MACD is positive (1.67), supporting upward trend continuation. Optimal entry would be near 285–290 ₹ on pullbacks. If already holding, exit should be considered near 298–305 ₹, close to resistance levels.

✅ Positive

• 📈 Trading above DMA 50 and DMA 200 confirms bullish technical trend.
• 💰 Dividend yield of 1.21% provides steady income.
• 📊 Increase in both FII (+0.45%) and DII (+0.56%) holdings shows institutional confidence.
• 📉 Strong trading volumes (44.9 lakh vs. avg 28.8 lakh) indicate active market participation.

⚠️ Limitation

• 📉 Debt-to-equity ratio of 2.51 highlights high leverage risk.
• 📊 PEG ratio of 1.42 suggests valuation is not very attractive relative to growth.
• 📉 Quarterly PAT declined from 392 Cr. to 376 Cr., showing earnings pressure (-20.9%).
• 📊 Current price near 52-week high (298 ₹) limits upside potential.

🚨 Company Negative News

• 📉 Decline in quarterly profits raises concerns about earnings consistency.
• 📉 High leverage could impact stability in volatile interest rate environments.

🌟 Company Positive News

• 📈 Institutional investors (both FII and DII) increased holdings, reflecting confidence in the company.
• 💰 Strong fundamentals with consistent profitability and dividend payouts.

🏭 Industry

• 📊 Industry PE at 21.2 vs. Manappuram’s PE of 15.1 indicates undervaluation compared to peers.
• 💳 NBFC sector benefits from rising credit demand but faces risks from interest rate cycles and regulatory changes.

📌 Conclusion

Overall, Manappuram Finance is a decent swing trade candidate with bullish technicals and institutional support. Entry around 285–290 ₹ is optimal, while exit should be considered near 298–305 ₹. Traders should monitor debt levels and earnings performance closely to manage risk effectively.

I can also prepare a comparison with peer NBFC stocks like Muthoot Finance or Bajaj Finance to highlight relative swing trade opportunities. Would you like me to set that up?