MANAPPURAM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | MANAPPURAM | Market Cap | 25,816 Cr. | Current Price | 305 ₹ | High / Low | 322 ₹ |
| Stock P/E | 16.9 | Book Value | 147 ₹ | Dividend Yield | 1.15 % | ROCE | 12.9 % |
| ROE | 12.9 % | Face Value | 2.00 ₹ | DMA 50 | 279 ₹ | DMA 200 | 273 ₹ |
| Chg in FII Hold | -5.55 % | Chg in DII Hold | 1.81 % | PAT Qtr | 376 Cr. | PAT Prev Qtr | 381 Cr. |
| RSI | 70.6 | MACD | 8.18 | Volume | 85,82,145 | Avg Vol 1Wk | 55,94,620 |
| Low price | 224 ₹ | High price | 322 ₹ | PEG Ratio | 2.65 | Debt to equity | 2.51 |
| 52w Index | 83.2 % | Qtr Profit Var | -9.37 % | EPS | 18.0 ₹ | Industry PE | 19.2 |
Analysis: Manappuram Finance is trading at 305 ₹, close to its 52-week high of 322 ₹, showing strong momentum. RSI at 70.6 indicates overbought conditions, while MACD at 8.18 confirms bullish strength. The stock is well above its 50 DMA (279 ₹) and 200 DMA (273 ₹), reflecting a sustained uptrend. Valuation is reasonable with a P/E of 16.9 compared to the industry average of 19.2, supported by decent ROCE and ROE (both at 12.9%). However, quarterly PAT declined slightly (376 Cr vs 381 Cr), and high debt-to-equity ratio (2.51) raises caution. Institutional activity shows FII holdings dropped significantly (-5.55%), while DIIs increased (+1.81%), balancing sentiment. EPS at 18 ₹ and dividend yield of 1.15% provide stability, but the PEG ratio of 2.65 suggests limited growth relative to valuation.
Optimal Entry Price: Around 280–290 ₹ (near 50 DMA support zone).
Exit Strategy: If already holding, consider exiting near 320–322 ₹ (recent high resistance zone) or if RSI remains above 70 for an extended period. A stop-loss can be placed around 275 ₹ to manage downside risk.
✅ Positive
- Reasonable valuation with P/E of 16.9 vs industry average of 19.2.
- EPS at 18 ₹, providing earnings stability.
- Dividend yield at 1.15% adds income support.
- DII holdings increased (+1.81%).
- Stock trading above both 50 DMA and 200 DMA, confirming uptrend.
⚠️ Limitation
- RSI at 70.6 indicates overbought conditions.
- High debt-to-equity ratio at 2.51.
- Quarterly PAT declined slightly (376 Cr vs 381 Cr).
- PEG ratio at 2.65, suggesting limited growth relative to valuation.
📉 Company Negative News
- FII holdings decreased significantly (-5.55%).
- Profit variation shows slight decline (-9.37%).
📈 Company Positive News
- DII holdings increased (+1.81%), showing domestic institutional support.
- Stock trading near 52-week high, reflecting strong investor sentiment.
🏭 Industry
- Industry P/E at 19.2, slightly higher than Manappuram’s 16.9, highlighting fair valuation.
- NBFC sector remains resilient but sensitive to interest rate cycles and credit quality.
🔎 Conclusion
Manappuram Finance is a moderately good candidate for swing trading, supported by fair valuation and strong momentum. Entry near 280–290 ₹ is optimal, with exit around 320–322 ₹. Risk management is crucial due to overbought RSI levels, high leverage, and declining FII confidence.