MASTEK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📊 Mastek shows moderate fundamentals with weak technical momentum, making it a cautious candidate for swing trading. The stock is trading below both its 50 DMA (2,213 ₹) and 200 DMA (2,359 ₹), reflecting bearish sentiment. RSI at 41.6 indicates neutral momentum, while MACD is negative (-15.0), suggesting short-term weakness. Optimal entry would be near 2,050–2,100 ₹ if support holds. If already holding, exit should be considered near 2,250–2,300 ₹, close to resistance levels.

✅ Positive

• 📈 Sequential PAT growth (75.2 Cr. vs. 41.9 Cr.) shows operational improvement.
• 💰 Debt-to-equity ratio of 0.01 indicates a nearly debt-free balance sheet.
• 📊 Increase in both FII (+0.19%) and DII (+1.00%) holdings reflects institutional confidence.
• 💵 Dividend yield of 1.08% provides steady income.

⚠️ Limitation

• 📉 High P/E ratio (36.3) compared to industry PE (26.4), showing overvaluation.
• 📊 PEG ratio of 1.58 suggests valuation is not attractive relative to growth.
• 📉 Stock trading below DMA 50 and DMA 200 confirms bearish trend.
• 📊 RSI at 41.6 shows lack of strong momentum.

🚨 Company Negative News

• 📉 Quarterly profit variation (-4.11%) highlights earnings volatility.
• 📉 Weak technical indicators (negative MACD, below DMA levels) suggest short-term downside risk.

🌟 Company Positive News

• 📈 Institutional investors increased holdings, showing confidence in the company.
• 💰 Debt-free structure and dividend payouts support investor sentiment.

🏭 Industry

• 📊 Industry PE at 26.4 vs. Mastek’s PE of 36.3 indicates overvaluation compared to peers.
• 💻 IT services sector remains growth-oriented but faces margin pressures from global demand cycles.

📌 Conclusion

Overall, Mastek is a moderate swing trade candidate with strong fundamentals but weak technicals and valuation concerns. Entry around 2,050–2,100 ₹ is optimal if support holds, while exit should be considered near 2,250–2,300 ₹. Traders should monitor earnings consistency and technical signals closely before committing to positions.

I can also prepare a peer comparison with IT mid-cap stocks like Coforge or Persistent Systems to highlight Mastek’s relative swing trade potential. Would you like me to set that up?