MAZDOCK - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.3

📊 Mazdock shows strong fundamentals but weak technical momentum, making it a cautious candidate for swing trading. The stock is trading below both its 50 DMA (2,654 ₹) and 200 DMA (2,703 ₹), reflecting bearish sentiment. RSI at 23.7 indicates oversold conditions, which may trigger a rebound, but MACD remains negative (-95.6), suggesting continued weakness. Optimal entry would be near 2,350–2,400 ₹ if support holds. If already holding, exit should be considered near 2,650–2,700 ₹, close to resistance levels.

✅ Positive

• 📈 Strong ROCE (48.8%) and ROE (36.5%) highlight excellent capital efficiency.
• 💰 Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
• 📊 PEG ratio of 0.76 suggests fair valuation relative to growth.
• 📉 Quarterly PAT improved from 419 Cr. to 715 Cr., showing profit growth (+26.9%).
• 📊 Increase in DII holdings (+0.44%) reflects domestic institutional confidence.

⚠️ Limitation

• 📉 High P/E ratio (43.6) compared to industry PE (40.8), showing slight overvaluation.
• 📊 Stock trading below DMA 50 and DMA 200 confirms bearish trend.
• 📉 RSI at 23.7 indicates oversold conditions but also highlights weak momentum.
• 📊 MACD at -95.6 shows strong bearish pressure.

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.60%) shows reduced foreign investor confidence.
• 📉 Weak technical indicators suggest short-term downside risk despite strong fundamentals.

🌟 Company Positive News

• 📈 Strong profit growth in the latest quarter supports investor sentiment.
• 💰 Debt-free structure and high efficiency ratios strengthen long-term fundamentals.

🏭 Industry

• 📊 Industry PE at 40.8 vs. Mazdock’s PE of 43.6 indicates slight overvaluation compared to peers.
• ⚓ Defence and shipbuilding sector benefits from government contracts and long-term demand visibility.

📌 Conclusion

Overall, Mazdock is a moderate swing trade candidate with strong fundamentals but weak technicals. Entry around 2,350–2,400 ₹ is optimal if support holds, while exit should be considered near 2,650–2,700 ₹. Traders should monitor technical indicators and institutional sentiment closely before committing to positions.

I can also prepare a comparison with other defence sector stocks like HAL or BEL to highlight Mazdock’s relative swing trade potential. Would you like me to set that up?