MANKIND - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.7

📊 Mankind Pharma shows weak technical momentum and overvaluation concerns, making it a cautious candidate for swing trading. The stock is trading below both its 50 DMA (2,279 ₹) and 200 DMA (2,402 ₹), reflecting bearish sentiment. RSI at 35.3 indicates oversold conditions, which may trigger a short-term rebound, but MACD remains negative (-47.7), suggesting continued weakness. Optimal entry would be near 2,100–2,150 ₹ if support holds. If already holding, exit should be considered near 2,300–2,350 ₹, close to resistance levels.

✅ Positive

• 📈 Quarterly PAT improved from 413 Cr. to 459 Cr., showing sequential profit growth.
• 💰 Low debt-to-equity ratio (0.47) indicates manageable leverage.
• 📊 Increase in DII holdings (+0.41%) reflects domestic institutional confidence.

⚠️ Limitation

• 📉 High P/E ratio (53.8) compared to industry PE (30.6), indicating overvaluation.
• 📊 PEG ratio of 6.40 suggests poor valuation relative to growth.
• 📉 Dividend yield of only 0.05% offers minimal income support.
• 📊 Stock trading below DMA 50 and DMA 200 confirms bearish trend.

🚨 Company Negative News

• 📉 Quarterly profit variation (-25.2%) highlights earnings volatility.
• 📉 Decline in FII holdings (-0.24%) shows reduced foreign investor confidence.

🌟 Company Positive News

• 📈 Sequential profit growth in the latest quarter supports near-term sentiment.
• 📊 Domestic institutional investors increased holdings, showing confidence in the company.

🏭 Industry

• 📊 Industry PE at 30.6 vs. Mankind’s PE of 53.8 indicates significant overvaluation compared to peers.
• 💊 Pharma sector remains defensive but faces margin pressures and regulatory challenges.

📌 Conclusion

Overall, Mankind Pharma is a weak swing trade candidate with rebound potential but poor valuation metrics and bearish technicals. Entry around 2,100–2,150 ₹ is optimal only if support holds, while exit should be considered near 2,300–2,350 ₹. Traders should monitor earnings consistency and investor sentiment closely before committing to positions.

I can also prepare a peer comparison with Sun Pharma or Cipla to highlight how Mankind Pharma stacks up in swing trade potential. Would you like me to set that up?