MANYAVAR - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.4

📊 MANYAVAR shows strong fundamentals with high ROCE (25.9%) and ROE (22.3%), supported by a healthy dividend yield (1.33%). However, the stock is trading below both 50 DMA (634 ₹) and 200 DMA (765 ₹), indicating bearish momentum. RSI at 38.1 suggests oversold conditions, which may provide a short-term bounce. Valuation is moderate with a P/E of 37.6 compared to industry average of 55.9, but PEG ratio of 5.02 signals expensive growth. Recent profit decline (-16.2%) adds caution.

✅ Optimal Entry Price: 585–595 ₹ (near support zone)

🚪 Exit Strategy (if already holding): Consider exit near 630–640 ₹ (close to 50 DMA resistance), or if RSI rises above 55.

Positive

• 📈 Strong ROCE (25.9%) and ROE (22.3%) highlight efficient capital use.
• 💹 Dividend yield (1.33%) provides shareholder return.
• 📊 Valuation (P/E 37.6) is lower than industry average (55.9), suggesting relative attractiveness.
• 📉 Oversold RSI (38.1) may offer short-term bounce opportunity.

Limitation

• ⚠️ Trading below DMA 50 & DMA 200 confirms bearish trend.
• 📉 Quarterly profit decline (-16.2%) raises earnings concerns.
• 📊 High PEG ratio (5.02) signals expensive growth relative to earnings.
• 📉 52w Index at 2.68% shows significant underperformance compared to broader market.

Company Negative News

• 📉 FII holding decreased (-0.12%), showing reduced foreign investor confidence.
• 📉 DII holding decreased (-0.15%), reflecting weaker domestic institutional support.

Company Positive News

• 📈 Dividend payout continues, supporting investor sentiment.
• 📊 Stable PAT at 56.1 Cr. despite sequential decline, showing resilience.

Industry

• 🏭 Industry P/E at 55.9 is higher, suggesting peers trade at richer valuations.
• 📊 Apparel and retail sector outlook remains positive, driven by festive demand and brand strength.

Conclusion

⚖️ MANYAVAR is a cautious swing trade candidate. Oversold RSI offers potential for a short-term bounce, but bearish technicals and declining profits limit upside. Entry near 585–595 ₹ provides tactical opportunity, while exit near 630–640 ₹ is prudent. Strict stop-loss discipline is essential due to volatility and sector competition.

Would you like me to extend this into a peer benchmarking overlay so you can compare MANYAVAR against other apparel and retail peers for relative strength and valuation positioning?