MEDANTA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📈 Analysis: MEDANTA presents a cautious swing trade setup. The current price of ₹1,249 is below both the 50 DMA (₹1,342) and 200 DMA (₹1,266), indicating short-term bearish momentum. RSI at 32.3 and MACD at -13.8 suggest oversold conditions, which could lead to a technical bounce. Fundamentally, the company is solid — strong ROCE (19.6%), ROE (15.2%), low debt, and consistent PAT growth. However, the high P/E (66.9) and PEG ratio (2.12) imply overvaluation. Institutional activity is mixed, with FII slightly reducing and DII increasing holdings.

🎯 Optimal Entry Price: ₹1,230–₹1,250 (near current support and oversold RSI)

🚪 Exit Strategy (if holding): Consider exiting near ₹1,340–₹1,360 (50 DMA resistance) or if RSI crosses 60 with MACD turning positive.

✅ Positive

• 📊 ROCE (19.6%) and ROE (15.2%) — solid operational efficiency
• 💸 Low debt-to-equity ratio (0.10) — strong financial structure
• 📈 EPS of ₹17.9 — consistent earnings
• 📈 DII holding increased (+0.77%) — domestic investor confidence
• 📊 PAT growth from ₹129 Cr. to ₹137 Cr. — stable profitability

⚠️ Limitation

• 📉 RSI and MACD indicate weak momentum
• 📉 Price below key moving averages — short-term bearish trend
• 📉 High P/E (66.9) and PEG (2.12) — valuation concerns
• 📉 FII holding decreased (-0.13%) — foreign investor caution
• 📉 Dividend yield of 0.04% — minimal income support

📰 Company Negative News

• No major public negative news, but technical weakness and valuation metrics are cautionary

🌟 Company Positive News

• Strong quarterly profit growth and rising DII interest reflect operational strength and domestic confidence

🏭 Industry

• Industry P/E is 57.2 — MEDANTA trades at a premium, reflecting growth expectations
• Healthcare sector remains resilient with long-term demand driven by infrastructure and service expansion

🧾 Conclusion

MEDANTA is a fundamentally strong but technically weak swing trade candidate. Entry near support offers a tactical opportunity if momentum improves. Exit near resistance or on RSI/MACD confirmation is advisable.

I can also compare MEDANTA’s setup with peers like Apollo Hospitals or Narayana Health to help refine your swing strategy.