MRF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | MRF | Market Cap | 57,688 Cr. | Current Price | 1,36,000 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 32.0 | Book Value | 45,019 ₹ | Dividend Yield | 0.17 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,45,691 ₹ | DMA 200 | 1,44,464 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | 0.12 % | PAT Qtr | 512 Cr. | PAT Prev Qtr | 484 Cr. |
| RSI | 38.0 | MACD | -4,570 | Volume | 6,237 | Avg Vol 1Wk | 8,522 |
| Low price | 1,00,500 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.63 | Debt to equity | 0.11 |
| 52w Index | 56.3 % | Qtr Profit Var | 12.3 % | EPS | 4,245 ₹ | Industry PE | 29.7 |
📊 MRF shows mixed signals for swing trading. The stock trades at ₹1,36,000, well below its 50 DMA (₹1,45,691) and 200 DMA (₹1,44,464), reflecting short-term weakness. RSI at 38.0 indicates oversold territory, suggesting potential rebound, but MACD at -4,570 confirms strong bearish momentum. Valuation is slightly above industry average (P/E 32.0 vs 29.7), supported by solid EPS (₹4,245) and moderate ROE (10.5%) and ROCE (13.8%). Low debt-to-equity (0.11) provides financial stability, while sequential PAT growth adds confidence. However, weak technicals and low dividend yield limit upside in the near term.
✅ Optimal Entry Price: Around ₹1,32,000–1,34,000 (near support zone, oversold levels).
🚪 Exit Strategy (if already holding): Consider exit near ₹1,45,000–1,48,000 (resistance zone close to 50 DMA). If price falls below ₹1,32,000, apply stop-loss to protect capital.
Positive
- 📈 EPS of ₹4,245 supports valuation strength.
- 💹 ROE (10.5%) and ROCE (13.8%) show operational efficiency.
- ⚡ Low debt-to-equity ratio (0.11) ensures financial stability.
- 📊 Sequential PAT growth (₹512 Cr. vs ₹484 Cr.).
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA.
- 📉 Strong bearish MACD (-4,570).
- 📉 RSI at 38 indicates oversold but weak momentum.
- 📉 Very low dividend yield (0.17%).
Company Negative News
- 📉 FII holdings decreased (-0.09%).
- ⚠️ Stock trading near mid-range of 52-week index (56.3%).
Company Positive News
- 📈 PAT improved sequentially, showing operational growth.
- 🏦 DII holdings increased (+0.12%).
Industry
- 🚗 Tyre & auto ancillary sector average PE is 29.7, MRF trades at a slight premium (32.0).
- 📊 Sector demand remains cyclical, linked to auto industry growth.
Conclusion
⚖️ MRF is a moderately suitable candidate for swing trading. Entry near ₹1,32,000–1,34,000 offers better risk-reward, while exits should be targeted near ₹1,45,000–1,48,000. Strong fundamentals and low debt provide stability, but bearish technicals and weak momentum limit short-term upside. Traders should remain cautious and apply strict stop-loss discipline below ₹1,32,000.