MAXHEALTH - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | MAXHEALTH | Market Cap | 92,778 Cr. | Current Price | 953 ₹ | High / Low | 1,314 ₹ |
| Stock P/E | 132 | Book Value | 87.3 ₹ | Dividend Yield | 0.16 % | ROCE | 12.5 % |
| ROE | 9.45 % | Face Value | 10.0 ₹ | DMA 50 | 1,039 ₹ | DMA 200 | 1,087 ₹ |
| Chg in FII Hold | -1.25 % | Chg in DII Hold | 1.17 % | PAT Qtr | 200 Cr. | PAT Prev Qtr | 160 Cr. |
| RSI | 28.0 | MACD | -20.6 | Volume | 45,45,861 | Avg Vol 1Wk | 47,28,867 |
| Low price | 934 ₹ | High price | 1,314 ₹ | PEG Ratio | 4.18 | Debt to equity | 0.08 |
| 52w Index | 5.07 % | Qtr Profit Var | 5.45 % | EPS | 7.10 ₹ | Industry PE | 43.5 |
📊 Max Healthcare (MAXHEALTH) shows decent fundamentals but weak technicals for swing trading. The RSI at 28.0 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-20.6) reflects bearish momentum, and the stock is trading below both 50 DMA (1,039 ₹) and 200 DMA (1,087 ₹), showing short-term weakness. With a very high P/E of 132 compared to the industry average of 43.5, the stock appears significantly overvalued. Overall, this is a moderately risky swing trade candidate with limited upside unless momentum improves.
💡 Optimal Entry Price: Around 940–960 ₹ (near support zone and oversold levels).
📈 Exit Strategy (if already holding): Consider exiting near 1,030–1,050 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT improved (200 Cr. vs 160 Cr.).
- EPS of 7.10 ₹ reflects earnings growth.
- ROCE (12.5%) and ROE (9.45%) are modest but positive.
- DII holdings increased (+1.17%), showing domestic investor support.
- Debt-to-equity ratio of 0.08 indicates low leverage.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- Bearish technical indicators (MACD negative, RSI oversold).
- Very high P/E (132) compared to industry average (43.5).
- PEG ratio of 4.18 suggests expensive valuation relative to growth.
- Dividend yield is very low (0.16%).
📉 Company Negative News
- FII holdings decreased (-1.25%), showing reduced foreign investor confidence.
- Stock has dropped sharply from 52-week high (1,314 ₹ to 953 ₹).
📈 Company Positive News
- Quarterly profit growth (5.45% variation).
- DII support increased, balancing foreign outflows.
- Stock trading near 52-week low, offering potential rebound opportunity.
🏭 Industry
- Industry PE is 43.5, much lower than Max Healthcare’s 132, suggesting peers are more reasonably valued.
- Healthcare sector remains defensive with consistent demand but faces margin pressures and regulatory risks.
🔎 Conclusion
Max Healthcare is a moderately risky swing trade candidate due to bearish technicals and high valuation. Entry near 940–960 ₹ offers limited risk, but upside is capped around 1,030–1,050 ₹ unless momentum improves. Strong profit growth and domestic investor support provide some confidence, but weak technicals and declining foreign interest make this suitable only for cautious short-term trades.