MRF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | MRF | Market Cap | 55,401 Cr. | Current Price | 1,30,545 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 24.8 | Book Value | 45,019 ₹ | Dividend Yield | 0.18 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,41,513 ₹ | DMA 200 | 1,43,565 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | 0.12 % | PAT Qtr | 736 Cr. | PAT Prev Qtr | 512 Cr. |
| RSI | 36.1 | MACD | -3,050 | Volume | 6,328 | Avg Vol 1Wk | 6,301 |
| Low price | 1,07,389 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.49 | Debt to equity | 0.11 |
| 52w Index | 41.2 % | Qtr Profit Var | 140 % | EPS | 5,123 ₹ | Industry PE | 24.2 |
📊 MRF shows mixed signals for swing trading. The RSI at 36.1 suggests the stock is nearing oversold territory, which could trigger a rebound. However, the MACD (-3,050) reflects strong bearish momentum, and the stock is trading well below both 50 DMA (1,41,513 ₹) and 200 DMA (1,43,565 ₹), showing technical weakness. Fundamentally, the company has decent ROCE (13.8%) and ROE (10.5%), with strong profit growth, but low dividend yield and declining FII holdings weigh on sentiment. Overall, this is a moderately risky swing trade candidate.
💡 Optimal Entry Price: Around 1,28,000–1,30,000 ₹ (near support zone).
📈 Exit Strategy (if already holding): Consider exiting near 1,41,000–1,43,000 ₹ (DMA resistance zone) unless momentum improves significantly.
✅ Positive
- Quarterly PAT improved (736 Cr. vs 512 Cr.).
- EPS of 5,123 ₹ reflects strong earnings power.
- ROCE (13.8%) and ROE (10.5%) are decent for the sector.
- PEG ratio of 0.49 suggests fair valuation relative to growth.
- Debt-to-equity ratio of 0.11 indicates low leverage.
⚠️ Limitation
- Stock trading well below 50 DMA and 200 DMA.
- MACD strongly bearish, showing weak momentum.
- Dividend yield is very low (0.18%).
- Volumes remain flat, limiting breakout potential.
📉 Company Negative News
- FII holdings decreased (-0.09%), showing reduced foreign investor confidence.
- Stock has dropped significantly from 52-week high (1,63,600 ₹ to 1,30,545 ₹).
📈 Company Positive News
- Strong quarterly profit growth (140% variation).
- DII holdings increased (+0.12%), showing domestic support.
- EPS growth supports valuation strength.
🏭 Industry
- Industry PE is 24.2, close to MRF’s 24.8, suggesting valuations are aligned with peers.
- Tyre and auto ancillary sector is cyclical, benefiting from demand recovery but sensitive to raw material costs.
🔎 Conclusion
MRF is a moderately risky swing trade candidate due to bearish technicals despite strong profit growth. Entry near 1,28,000–1,30,000 ₹ offers limited risk, but upside is capped around 1,41,000–1,43,000 ₹ unless momentum improves. Strong fundamentals support the stock, but technical weakness makes this suitable only for cautious short-term trades.