MEDANTA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | MEDANTA | Market Cap | 31,485 Cr. | Current Price | 1,172 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 62.8 | Book Value | 141 ₹ | Dividend Yield | 0.04 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,094 ₹ | DMA 200 | 1,162 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.77 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 64.5 | MACD | 23.9 | Volume | 8,22,012 | Avg Vol 1Wk | 3,43,346 |
| Low price | 955 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.99 | Debt to equity | 0.07 |
| 52w Index | 43.2 % | Qtr Profit Var | -18.4 % | EPS | 17.3 ₹ | Industry PE | 48.2 |
MEDANTA shows decent fundamentals but high valuation and mixed technical signals make it a cautious swing trade candidate. The stock trades at a P/E of 62.8, well above the industry average of 48.2, while the PEG ratio of 1.99 suggests overvaluation relative to growth. Technical indicators (RSI 64.5, MACD 23.9) show bullish momentum but nearing overbought territory. The optimal entry price would be near the 50 DMA level of ₹1,090–1,100. If already holding, consider exiting around ₹1,400–1,450, close to recent highs and resistance levels.
✅ Positive
- Strong ROCE (19.6%) and ROE (15.2%) compared to peers in healthcare.
- Low debt-to-equity ratio (0.07) ensures financial stability.
- Increase in DII holdings (+0.77%) shows domestic investor confidence.
- Trading volume significantly higher than 1-week average, indicating strong interest.
⚠️ Limitation
- High P/E ratio (62.8) compared to industry average (48.2).
- PEG ratio (1.99) signals overvaluation relative to growth.
- Dividend yield is very low (0.04%), limiting passive returns.
- Quarterly PAT declined from ₹128 Cr. to ₹107 Cr. (-18.4%).
📉 Company Negative News
- Decline in quarterly profits raises concerns about earnings consistency.
- Foreign institutional investors reduced holdings (-0.39%).
📈 Company Positive News
- Domestic institutional investors increased holdings (+0.77%).
- Strong operational efficiency reflected in ROCE and ROE.
- Stock has shown resilience with a 52-week index of 43.2%.
🏭 Industry
- Industry P/E is 48.2, lower than MEDANTA’s 62.8, suggesting relative overvaluation.
- Healthcare sector remains structurally strong with long-term demand drivers.
🔎 Conclusion
MEDANTA is a fundamentally stable but overvalued stock, making it a cautious swing trade candidate. Entry near ₹1,090–1,100 offers a safer setup, while profit booking should be considered around ₹1,400–1,450. Traders should monitor earnings trends and institutional activity for sustained momentum.