MASTEK - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.9

📉 Optimal Entry Price: ₹2,100–₹2,150 (near support and RSI zone)

📈 Exit Strategy (if holding): ₹2,350–₹2,400 (near 200 DMA and resistance)

🔷 Positive

• 📊 EPS of ₹41.9: Indicates solid earnings performance.
• 📈 ROCE (15.5%) and ROE (13.5%): Reflect decent capital efficiency.
• 📉 Debt-to-equity ratio of 0.01: Shows strong financial health.
• 📈 DII holding increased by 1.00%: Indicates rising domestic institutional confidence.
• 📈 Volume above 1-week average: Suggests growing interest despite price dip.

⚠️ Limitation

• 📉 MACD at -33.1: Indicates bearish momentum.
• 📉 RSI at 44.7: Neutral zone, but trending toward oversold.
• 📉 Quarterly profit declined 4.11%: Indicates short-term earnings pressure.
• 📉 PEG ratio of 1.57: Suggests valuation is slightly stretched relative to growth.
• 📉 Stock P/E of 36.3: Above industry average (29.7), may reflect premium pricing.

📉 Company Negative News

• 📉 Q2FY26 results showed a slight dip in profitability, raising concerns over margin sustainability.
• 📉 Stock has corrected nearly 40% from its 52-week high, reflecting weak sentiment.

📈 Company Positive News

• 📊 Mastek reported a 79% QoQ jump in PAT, driven by improved operating efficiency and cost control.
• 📈 Management remains optimistic about growth in digital transformation and government tech contracts.

💻 Industry

• 🖥️ Operates in the IT services and digital transformation space, which is gaining traction globally.
• 📈 Industry P/E of 29.7 suggests Mastek trades at a slight premium, likely due to niche positioning.

🧾 Conclusion

• ⚠️ Mastek is a moderate swing trade candidate with improving fundamentals but technical weakness.
• 📌 Entry near ₹2,100–₹2,150 offers a low-risk setup if RSI rebounds and MACD stabilizes.
• 🚪 If already holding, consider exiting near ₹2,350–₹2,400, aligning with 200 DMA and resistance zone.

I can also chart Mastek’s RSI and MACD trends to help you time your entry more precisely.