MEDANTA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | MEDANTA | Market Cap | 30,271 Cr. | Current Price | 1,127 ₹ | High / Low | 1,456 ₹ |
| Stock P/E | 57.6 | Book Value | 141 ₹ | Dividend Yield | 0.04 % | ROCE | 19.6 % |
| ROE | 15.2 % | Face Value | 2.00 ₹ | DMA 50 | 1,156 ₹ | DMA 200 | 1,218 ₹ |
| Chg in FII Hold | -0.87 % | Chg in DII Hold | 1.02 % | PAT Qtr | 128 Cr. | PAT Prev Qtr | 137 Cr. |
| RSI | 50.0 | MACD | -20.3 | Volume | 1,88,283 | Avg Vol 1Wk | 3,25,271 |
| Low price | 1,010 ₹ | High price | 1,456 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.07 |
| 52w Index | 26.2 % | Qtr Profit Var | 22.6 % | EPS | 19.2 ₹ | Industry PE | 43.3 |
📊 Medanta shows decent fundamentals with moderate ROCE and ROE, low debt, and steady profit growth. However, technical indicators (MACD negative, RSI neutral, price below 200 DMA) suggest weak momentum. The high P/E compared to industry average makes it relatively expensive. It is a cautious candidate for swing trading, suitable only with tight risk management.
💡 Optimal Entry Price: Around 1,080–1,120 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 1,250–1,280 ₹ resistance, or exit if price falls below 1,050 ₹.
Positive ✅
- ROCE (19.6%) and ROE (15.2%) show moderate efficiency.
- Debt-to-equity ratio of 0.07 indicates low leverage risk.
- Quarterly PAT of 128 Cr. vs 137 Cr. shows stable earnings.
- DII holdings increased (+1.02%), reflecting domestic institutional confidence.
- EPS of 19.2 ₹ supports profitability visibility.
Limitation ⚠️
- High P/E of 57.6 compared to industry average of 43.3 suggests premium valuation.
- Dividend yield of 0.04% is negligible.
- MACD negative (-20.3) signals bearish undertone.
- Price trading below 200 DMA (1,218 ₹), showing weak momentum.
- FII holdings declined (-0.87%), indicating reduced foreign investor confidence.
- Trading volume below 1-week average, suggesting weaker participation.
Company Negative News 📉
- No major negative news reported, but declining FII interest and weak technical signals are concerns.
Company Positive News 📈
- Quarterly profit variation (+22.6%) shows earnings resilience.
- Strong presence in healthcare sector with long-term demand visibility.
Industry 🌐
- Industry P/E at 43.3 highlights sector trades at a premium.
- Healthcare sector benefits from rising demand and structural growth drivers.
Conclusion 📝
Medanta is a cautious swing trade candidate with stable earnings and low debt, but weak technical signals and high valuations limit short-term upside. Entry near 1,080–1,120 ₹ offers a safer risk-reward setup. Exit around 1,250–1,280 ₹ or below 1,050 ₹ if momentum weakens. Suitable for short-term trades, but investors should remain cautious due to premium valuation and bearish technicals.