MGL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 Optimal Entry Price: ₹1,240–₹1,260 (near support and RSI zone)

📈 Exit Strategy (if holding): ₹1,400–₹1,450 (resistance zone and brokerage targets)

🔷 Positive

• 📊 Low P/E of 12.6: Undervalued compared to industry average of 19.7.
• 💰 Dividend yield of 2.37%: Attractive for income-focused investors.
• 📉 PEG ratio of 0.71: Indicates reasonable valuation relative to growth.
• 📈 Strong ROCE (22.9%) and ROE (17.7%): Reflect efficient capital use.
• 📉 Debt-to-equity ratio of 0.03: Shows financial stability.

⚠️ Limitation

• 📉 MACD is negative (-6.49): Indicates bearish momentum.
• 📉 RSI at 41.6: Near oversold territory, but not yet signaling reversal.
• 📉 Quarterly profit dropped 32.6%: From ₹320 Cr. to ₹193 Cr., showing earnings pressure.
• 📉 FII holding declined by 1.89%: Reflects reduced foreign investor confidence.

📉 Company Negative News

• 📰 Q2FY26 results showed margin pressure and a 40% QoQ decline in net profit

  Business Standard

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• 📉 Mixed analyst sentiment with some brokerages issuing "Reduce" ratings and targets below current price

  CNBCTV18

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📈 Company Positive News

• 📈 Citi and Motilal Oswal issued "Buy" ratings with targets of ₹1,700, indicating potential upside

  Business Standard

  +1

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• 📊 Despite earnings dip, volume growth remains steady, supporting long-term fundamentals

  Business Standard

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🔥 Industry

• 🛢️ MGL operates in the gas distribution sector, which benefits from urban expansion and clean energy policies.
• 📈 Industry P/E of 19.7 suggests MGL is trading at a discount, offering value potential.

🧾 Conclusion

• ⚠️ MGL is a cautious swing trade candidate with strong fundamentals but short-term bearish signals.
• 📌 Entry near ₹1,240–₹1,260 offers a low-risk setup if support holds and RSI rebounds.
• 🚪 If already holding, consider exiting near ₹1,400–₹1,450, aligning with resistance and analyst targets.

Sources

Business Standard

+1

I can also chart MGL’s MACD and RSI trends to visualize its momentum shift—just let me know.