MASTEK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | MASTEK | Market Cap | 6,507 Cr. | Current Price | 2,099 ₹ | High / Low | 2,818 ₹ |
| Stock P/E | 35.6 | Book Value | 260 ₹ | Dividend Yield | 1.09 % | ROCE | 15.5 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 2,148 ₹ | DMA 200 | 2,313 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 1.00 % | PAT Qtr | 75.2 Cr. | PAT Prev Qtr | 41.9 Cr. |
| RSI | 48.6 | MACD | -31.0 | Volume | 1,22,956 | Avg Vol 1Wk | 2,46,786 |
| Low price | 1,883 ₹ | High price | 2,818 ₹ | PEG Ratio | 1.54 | Debt to equity | 0.01 |
| 52w Index | 23.1 % | Qtr Profit Var | -4.11 % | EPS | 41.9 ₹ | Industry PE | 25.7 |
📊 Based on the given parameters, Mastek shows moderate potential for swing trading. Fundamentals are decent (low debt, fair ROCE/ROE, dividend yield), but valuation is stretched (P/E higher than industry, PEG ratio above 1). Technical indicators suggest consolidation (RSI ~49 neutral, MACD negative, price below 50 & 200 DMA). This makes it a cautious candidate with limited short-term upside.
💡 Optimal Entry Price: Around 2,050–2,080 ₹ (near support zone close to 52-week low).
🚪 Exit Strategy: If already holding, consider exiting near 2,150–2,200 ₹ (50 DMA resistance) or trail stop-loss below 2,000 ₹ to protect capital.
✅ Positive
- 📈 ROCE (15.5%) and ROE (13.5%) show fair efficiency.
- 📊 EPS of 41.9 ₹ reflects profitability.
- 💰 Dividend yield of 1.09% provides income support.
- 📉 Debt-to-equity ratio of 0.01 ensures financial stability.
- 📦 Institutional support with FII (+0.19%) and DII (+1.00%) inflows.
⚠️ Limitation
- 📉 Current P/E of 35.6 is higher than industry average (25.7), suggesting overvaluation.
- 📉 PEG ratio of 1.54 indicates valuation is not fully supported by growth.
- 📉 Price below both 50 DMA (2,148 ₹) and 200 DMA (2,313 ₹), showing bearish bias.
- 📉 Trading volume lower than weekly average, indicating weaker participation.
📉 Company Negative News
- Quarterly profit variation shows a decline (-4.11%), raising concerns about earnings consistency.
- MACD negative (-31.0), signaling downward pressure.
📈 Company Positive News
- Quarterly PAT improved from 41.9 Cr. to 75.2 Cr., showing growth momentum.
- Strong institutional inflows (FII & DII) highlight investor confidence.
- Debt-free balance sheet provides financial stability.
🏭 Industry
- Industry PE at 25.7 is lower than Mastek’s PE, highlighting sector strength but company-specific overvaluation.
- IT services sector remains resilient, supported by digital transformation demand, though competition is intense.
🔎 Conclusion
Mastek is a fair swing trade candidate with decent fundamentals but stretched valuations and weak technicals. Entry near 2,050–2,080 ₹ offers a cautious setup, with profit-taking around 2,150–2,200 ₹. However, declining profit variation and bearish technical signals warrant caution. A strict stop-loss below 2,000 ₹ is recommended to manage downside risk.