MANAPPURAM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | MANAPPURAM | Market Cap | 22,359 Cr. | Current Price | 264 ₹ | High / Low | 322 ₹ |
| Stock P/E | 14.3 | Book Value | 147 ₹ | Dividend Yield | 1.33 % | ROCE | 13.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 283 ₹ | DMA 200 | 274 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.98 % | PAT Qtr | 381 Cr. | PAT Prev Qtr | 376 Cr. |
| RSI | 41.4 | MACD | -10.1 | Volume | 74,96,415 | Avg Vol 1Wk | 72,72,422 |
| Low price | 212 ₹ | High price | 322 ₹ | PEG Ratio | 1.34 | Debt to equity | 2.51 |
| 52w Index | 47.7 % | Qtr Profit Var | -15.9 % | EPS | 18.5 ₹ | Industry PE | 16.4 |
📊 Manappuram Finance (MANAPPURAM) shows fair fundamentals but weak technicals for swing trading. The RSI at 41.4 indicates neutral-to-oversold conditions, while the MACD (-10.1) reflects bearish momentum. The stock is trading below both 50 DMA (283 ₹) and 200 DMA (274 ₹), showing short-term weakness. With a P/E of 14.3 compared to the industry average of 16.4, the stock appears slightly undervalued. Overall, this is a moderately good swing trade candidate with cautious entry.
💡 Optimal Entry Price: Around 255–265 ₹ (near recent support zone).
📈 Exit Strategy (if already holding): Consider exiting near 280–290 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT stable (381 Cr. vs 376 Cr.).
- EPS of 18.5 ₹ reflects earnings consistency.
- Dividend yield of 1.33% adds investor appeal.
- PEG ratio of 1.34 suggests fair valuation relative to growth.
- DII holdings increased (+1.98%), showing strong domestic investor support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- Bearish technical indicators (MACD negative, RSI weak).
- ROCE (13.1%) and ROE (16.0%) are modest compared to peers.
- Debt-to-equity ratio of 2.51 indicates high leverage.
📉 Company Negative News
- FII holdings decreased (-1.38%), showing reduced foreign investor confidence.
- Quarterly profit variation (-15.9%) indicates declining growth momentum.
- Stock has dropped from 52-week high (322 ₹ to 264 ₹).
📈 Company Positive News
- DII holdings increased significantly (+1.98%), showing strong domestic support.
- EPS stability supports valuation strength.
- Trading volumes remain strong, slightly above weekly average.
🏭 Industry
- Industry PE is 16.4, slightly higher than Manappuram’s 14.3, suggesting undervaluation compared to peers.
- NBFC sector is cyclical, sensitive to interest rates, credit demand, and regulatory changes.
🔎 Conclusion
Manappuram Finance is a moderately good swing trade candidate with fair valuation and strong domestic investor support. Entry near 255–265 ₹ offers a favorable risk-reward setup, while exits near 280–290 ₹ capture upside potential. Weak technicals and declining foreign investor confidence warrant caution, but stable earnings and dividend yield make this suitable for tactical short-term trades.