MPHASIS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📊 Mphasis shows strong fundamentals and healthy technical momentum, making it a decent candidate for swing trading. The stock is trading above both its 50 DMA (2,824 ₹) and 200 DMA (2,755 ₹), reflecting bullish strength. RSI at 56.0 indicates healthy momentum without being overbought, and MACD is positive (26.3), supporting upward trend continuation. Optimal entry would be near 2,850–2,870 ₹ on pullbacks. If already holding, exit should be considered near 3,150–3,180 ₹, close to resistance levels.

✅ Positive

• 📈 Strong ROCE (33.7%) and ROE (25.2%) highlight excellent capital efficiency.
• 💰 Dividend yield of 2.00% provides steady income support.
• 📊 Trading above DMA 50 and DMA 200 confirms bullish technical trend.
• 📉 Quarterly PAT improved from 298 Cr. to 393 Cr., showing profit growth (+5.63%).
• 📊 Increase in DII holdings (+0.57%) reflects domestic institutional confidence.

⚠️ Limitation

• 📉 High P/E ratio (38.3) compared to industry PE (26.4), showing overvaluation.
• 📊 PEG ratio of 5.24 suggests poor valuation relative to growth.
• 📉 RSI at 56.0 is close to overbought territory, limiting upside potential.
• 📊 Slight decline in FII holdings (-0.47%) shows reduced foreign investor confidence.

🚨 Company Negative News

• 📉 Overvaluation compared to peers may limit upside potential.
• 📉 Decline in FII holdings could weigh on sentiment.

🌟 Company Positive News

• 📈 Strong quarterly profit growth supports investor confidence.
• 💰 Dividend payouts and robust efficiency ratios strengthen fundamentals.
• 📊 Increase in DII holdings shows domestic institutional support.

🏭 Industry

• 📊 Industry PE at 26.4 vs. Mphasis’s PE of 38.3 indicates overvaluation compared to peers.
• 💻 IT services sector remains growth-oriented but faces margin pressures from global demand cycles.

📌 Conclusion

Overall, Mphasis is a moderate-to-strong swing trade candidate with bullish technicals and solid fundamentals but valuation concerns. Entry around 2,850–2,870 ₹ is optimal, while exit should be considered near 3,150–3,180 ₹. Traders should monitor institutional sentiment and valuation metrics closely before committing to positions.

I can also prepare a peer comparison with IT stocks like Infosys or Coforge to highlight Mphasis’s relative swing trade potential. Would you like me to set that up?