MANAPPURAM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | MANAPPURAM | Market Cap | 24,592 Cr. | Current Price | 291 ₹ | High / Low | 322 ₹ |
| Stock P/E | 15.7 | Book Value | 147 ₹ | Dividend Yield | 1.20 % | ROCE | 13.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 293 ₹ | DMA 200 | 270 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.98 % | PAT Qtr | 381 Cr. | PAT Prev Qtr | 376 Cr. |
| RSI | 48.0 | MACD | -3.81 | Volume | 59,51,432 | Avg Vol 1Wk | 79,99,207 |
| Low price | 169 ₹ | High price | 322 ₹ | PEG Ratio | 1.47 | Debt to equity | 2.51 |
| 52w Index | 80.0 % | Qtr Profit Var | -15.9 % | EPS | 18.5 ₹ | Industry PE | 19.4 |
📊 Manappuram Finance shows a moderately positive outlook for swing trading with mixed signals. The stock trades at ₹291, slightly below its 50 DMA (₹293) but above its 200 DMA (₹270), reflecting medium-term support. RSI at 48.0 indicates neutral momentum, while MACD at -3.81 suggests mild bearishness. Valuation is attractive with a P/E of 15.7 compared to industry average of 19.4, supported by ROE (16.0%) and ROCE (13.1%). EPS of ₹18.5 and dividend yield of 1.20% add investor appeal. However, high debt-to-equity (2.51) and declining quarterly profit variation (-15.9%) limit upside.
✅ Optimal Entry Price: Around ₹280–290 (near support zone, slightly below current price).
🚪 Exit Strategy (if already holding): Consider exit near ₹310–320 (resistance zone close to 52-week high). If price falls below ₹275, apply stop-loss to protect capital.
Positive
- 📈 Attractive valuation (P/E 15.7 vs industry 19.4).
- 💹 Strong ROE (16.0%) and decent ROCE (13.1%).
- 💰 Dividend yield of 1.20% adds investor appeal.
- 📊 EPS of ₹18.5 supports valuation strength.
- 🏦 DII holdings increased (+1.98%).
Limitation
- ⚠️ High debt-to-equity ratio (2.51).
- 📉 Trading slightly below 50 DMA, showing short-term weakness.
- 📉 Negative MACD (-3.81) indicates bearish momentum.
- 📉 Declining quarterly profit variation (-15.9%).
Company Negative News
- 📉 FII holdings decreased (-1.38%).
- ⚠️ Profit growth slowed compared to previous quarters.
Company Positive News
- 📈 PAT improved sequentially (₹381 Cr. vs ₹376 Cr.).
- 🏦 DII accumulation signals domestic investor confidence.
Industry
- 🏦 NBFC sector average PE is 19.4, Manappuram trades at a discount (15.7).
- 📊 Sector demand remains steady, supported by gold loan and retail financing growth.
Conclusion
⚖️ Manappuram Finance is a moderately suitable candidate for swing trading. Entry near ₹280–290 offers favorable risk-reward, while exits should be targeted near ₹310–320. Strong fundamentals and DII support provide positives, but high leverage, weak momentum, and declining profit growth limit short-term upside. Traders should remain cautious and apply strict stop-loss discipline below ₹275.