MARUTI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | MARUTI | Market Cap | 3,95,914 Cr. | Current Price | 12,599 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 27.3 | Book Value | 3,098 ₹ | Dividend Yield | 1.07 % | ROCE | 21.7 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 14,601 ₹ | DMA 200 | 14,632 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.29 % | PAT Qtr | 3,794 Cr. | PAT Prev Qtr | 3,303 Cr. |
| RSI | 29.5 | MACD | -646 | Volume | 6,30,947 | Avg Vol 1Wk | 9,68,487 |
| Low price | 11,059 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.38 | Debt to equity | 0.00 |
| 52w Index | 24.4 % | Qtr Profit Var | 3.68 % | EPS | 462 ₹ | Industry PE | 28.2 |
📊 Maruti Suzuki (MARUTI) shows strong fundamentals but weak technicals for swing trading. The RSI at 29.5 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-646) reflects bearish momentum, and the stock is trading well below both 50 DMA (14,601 ₹) and 200 DMA (14,632 ₹), showing short-term weakness. With a P/E of 27.3 compared to the industry average of 28.2, the stock is fairly valued. Overall, this is a good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 12,400–12,600 ₹ (near support zone).
📈 Exit Strategy (if already holding): Consider exiting near 14,500–14,600 ₹ (DMA resistance zone) unless momentum strengthens further.
✅ Positive
- Quarterly PAT improved (3,794 Cr. vs 3,303 Cr.).
- EPS of 462 ₹ reflects strong earnings power.
- ROCE (21.7%) and ROE (15.6%) are healthy, showing efficient capital use.
- PEG ratio of 0.38 suggests undervaluation relative to growth.
- Debt-to-equity ratio of 0.00 indicates no leverage risk.
⚠️ Limitation
- Stock trading well below both 50 DMA and 200 DMA.
- Bearish technical indicators (MACD negative, RSI oversold).
- Dividend yield is modest at 1.07%.
- Volumes below weekly average, showing weaker participation.
📉 Company Negative News
- FII holdings decreased (-0.02%), showing reduced foreign investor confidence.
- Stock has dropped significantly from 52-week high (17,372 ₹ to 12,599 ₹).
📈 Company Positive News
- DII holdings increased (+0.29%), showing domestic investor support.
- Strong quarterly profit growth (3.68% variation).
- EPS growth supports valuation strength.
🏭 Industry
- Industry PE is 28.2, close to Maruti’s 27.3, suggesting fair valuation compared to peers.
- Automobile sector is cyclical, benefiting from demand recovery but sensitive to raw material costs and interest rates.
🔎 Conclusion
Maruti Suzuki is a good swing trade candidate with strong fundamentals and fair valuation. Entry near 12,400–12,600 ₹ offers a favorable risk-reward setup, while exits near 14,500–14,600 ₹ capture upside potential. Weak technicals and declining foreign investor confidence warrant caution, but strong profitability and efficiency make this suitable for tactical short-term trades.