MPHASIS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.6
| Stock Code | MPHASIS | Market Cap | 39,072 Cr. | Current Price | 2,047 ₹ | High / Low | 3,037 ₹ |
| Stock P/E | 27.4 | Book Value | 307 ₹ | Dividend Yield | 2.78 % | ROCE | 33.7 % |
| ROE | 25.2 % | Face Value | 10.0 ₹ | DMA 50 | 2,430 ₹ | DMA 200 | 2,652 ₹ |
| Chg in FII Hold | 1.27 % | Chg in DII Hold | 8.18 % | PAT Qtr | 364 Cr. | PAT Prev Qtr | 393 Cr. |
| RSI | 23.3 | MACD | -122 | Volume | 2,63,363 | Avg Vol 1Wk | 4,79,032 |
| Low price | 2,025 ₹ | High price | 3,037 ₹ | PEG Ratio | 3.86 | Debt to equity | 0.09 |
| 52w Index | 2.21 % | Qtr Profit Var | -3.19 % | EPS | 73.6 ₹ | Industry PE | 20.8 |
Analysis: MPHASIS trades at 2,047 ₹, well below its 50 DMA (2,430 ₹) and 200 DMA (2,652 ₹), showing strong bearish momentum. RSI at 23.3 indicates oversold conditions, but MACD (-122) confirms continued weakness. The P/E of 27.4 is higher than the industry average (20.8), suggesting relative overvaluation. Despite strong fundamentals like ROCE (33.7%), ROE (25.2%), and low debt-to-equity (0.09), short-term technicals make this a weak swing trade candidate.
Optimal Entry Price: Around 2,000–2,050 ₹, near the support zone and close to the 52-week low of 2,025 ₹.
Exit Strategy (if already holding): Consider exiting near 2,400–2,450 ₹ (50 DMA resistance zone) if recovery occurs. Place a stop-loss below 2,000 ₹ to protect against further downside.
✅ Positive
- Strong ROCE (33.7%) and ROE (25.2%) highlight operational efficiency.
- Low debt-to-equity ratio (0.09) shows financial stability.
- Dividend yield of 2.78% provides steady income.
- EPS of 73.6 ₹ reflects solid earnings power.
⚠️ Limitation
- Valuation is relatively high (P/E 27.4 vs industry 20.8).
- Technical indicators are weak (RSI oversold, MACD negative).
- Quarterly PAT declined from 393 Cr. to 364 Cr.
- PEG ratio of 3.86 suggests limited growth relative to valuation.
📉 Company Negative News
- Quarterly profit variation (-3.19%) shows slowing momentum.
- Volume is lower than average, indicating reduced trading interest.
📈 Company Positive News
- FII holdings increased (+1.27%), showing foreign investor confidence.
- DII holdings surged (+8.18%), reflecting strong domestic support.
🏭 Industry
- Industry P/E is 20.8, making MPHASIS relatively expensive.
- IT services sector faces global demand fluctuations but benefits from digital transformation trends.
🔎 Conclusion
MPHASIS has strong fundamentals but weak technicals, making it a poor swing trade candidate at present. Oversold RSI may trigger a short-term bounce, but high valuation and declining profits limit upside potential. Safer entry is near 2,000–2,050 ₹, with exit around 2,400–2,450 ₹ if holding. Better suited for long-term investors than short-term swing traders.