MRF - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📊 MRF shows mixed signals for swing trading. The stock is trading close to its 50 DMA (1,53,643 ₹), suggesting indecision, while it remains above its 200 DMA (1,44,528 ₹), indicating long-term strength. RSI at 44.8 reflects neutral momentum, and MACD is negative, showing short-term weakness. Optimal entry would be near 1,50,000–1,51,000 ₹ if support holds. If already holding, exit should be considered near 1,60,000–1,62,000 ₹, close to resistance levels.

✅ Positive

• 📈 EPS of 4,245 ₹ highlights strong earnings power.
• 💰 Low debt-to-equity ratio (0.11) indicates financial stability.
• 📊 PEG ratio of 0.71 suggests reasonable valuation relative to growth.
• 📉 Quarterly PAT improved from 484 Cr. to 512 Cr., showing profit growth (+12.3%).

⚠️ Limitation

• 📉 High P/E ratio (36.2) compared to industry PE (31.0), indicating slight overvaluation.
• 📊 MACD at -818 shows bearish short-term momentum.
• 📉 ROCE (13.8%) and ROE (10.5%) are moderate compared to peers.
• 📊 Current price hovering near 50 DMA reflects indecision in trend direction.

🚨 Company Negative News

• 📉 Decline in FII holdings (-0.40%) suggests reduced foreign investor confidence.

🌟 Company Positive News

• 📈 Increase in DII holdings (+0.72%) shows domestic institutional support.
• 💰 Consistent profitability with quarterly PAT growth.

🏭 Industry

• 📊 Industry PE at 31.0 vs. MRF’s 36.2 indicates slight overvaluation compared to peers.
• 🚗 Auto and tyre sector remains cyclical but benefits from rising demand in replacement and OEM markets.

📌 Conclusion

Overall, MRF is a moderate swing trade candidate with strong earnings but short-term bearish signals. Entry around 1,50,000–1,51,000 ₹ is optimal, while exit should be considered near 1,60,000–1,62,000 ₹. Traders should monitor MACD and FII sentiment closely before committing to positions.

Would you like me to also highlight technical chart patterns for MRF (like support/resistance zones and trendlines) to strengthen the swing trade setup?