MPHASIS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📉 Optimal Entry Price: ₹2,730–₹2,750 (near 200 DMA and RSI support)

📈 Exit Strategy (if holding): ₹3,200–₹3,240 (near 52-week high and resistance)

🔷 Positive

• 📈 ROCE (33.7%) and ROE (25.2%): Indicate excellent capital efficiency and profitability.
• 📈 MACD at 3.21: Suggests bullish crossover and positive momentum.
• 📈 Trading above 200 DMA: Reflects long-term technical strength.
• 📈 DII holding increased by 0.57%: Signals growing domestic institutional confidence.
• 💰 Dividend yield of 2.06%: Offers decent income potential for swing traders.

⚠️ Limitation

• 📉 High P/E of 36.6: Above industry average (29.7), suggesting premium valuation.
• 📉 PEG ratio of 5.00: Indicates expensive valuation relative to growth.
• 📉 RSI at 47.0: Neutral zone, not yet signaling strong momentum.
• 📉 Volume below 1-week average: May reflect reduced short-term interest.
• 📉 FII holding dropped by 0.47%: Reflects cautious foreign sentiment.

📉 Company Negative News

• 📉 Analysts flagged concerns over margin pressure in legacy IT services and slower deal ramp-ups.
• 📉 FII outflows suggest some skepticism around valuation and near-term growth visibility.

📈 Company Positive News

• 📈 Q2FY26 PAT rose 32% QoQ to ₹393 Cr., driven by operational efficiency and digital transformation demand.
• 📊 Management remains optimistic about cloud and AI-led services pipeline in BFSI and logistics verticals.

💻 Industry

• 🖥️ Operates in the IT services sector, which is stabilizing post global tech slowdown and gaining traction in digital transformation.
• 📈 Industry P/E of 29.7 suggests Mphasis trades at a premium, likely due to its niche focus and client retention strength.

🧾 Conclusion

• ✅ Mphasis is a strong swing trade candidate with solid fundamentals and improving technicals, though valuation remains a concern.
• 📌 Entry near ₹2,730–₹2,750 offers a favorable setup if RSI rebounds and MACD sustains.
• 🚪 If already holding, consider exiting near ₹3,200–₹3,240, aligning with resistance and 52-week high.

I can also compare Mphasis with peers like LTIMindtree or Coforge to help refine your swing trade strategy.