MRF - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | MRF | Market Cap | 54,800 Cr. | Current Price | 1,29,235 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 24.6 | Book Value | 45,019 ₹ | Dividend Yield | 0.18 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,35,611 ₹ | DMA 200 | 1,40,889 ₹ |
| Chg in FII Hold | -0.20 % | Chg in DII Hold | -0.25 % | PAT Qtr | 736 Cr. | PAT Prev Qtr | 512 Cr. |
| RSI | 39.5 | MACD | -1,084 | Volume | 7,113 | Avg Vol 1Wk | 8,772 |
| Low price | 1,23,430 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.48 | Debt to equity | 0.11 |
| 52w Index | 14.4 % | Qtr Profit Var | 140 % | EPS | 5,123 ₹ | Industry PE | 24.0 |
MRF shows a mix of strong fundamentals and weak technicals. The RSI at 39.5 suggests the stock is nearing oversold levels, which could trigger a rebound. However, the MACD remains negative, indicating bearish momentum. The PEG ratio of 0.48 and debt-to-equity of 0.11 highlight undervaluation and financial strength. Still, declining institutional holdings and subdued trading volume limit upside potential.
✅ Optimal Entry Price: Around ₹1,24,500 – ₹1,26,000 (near support zone).
📈 Exit Strategy if Holding: Consider exiting around ₹1,35,000 – ₹1,37,000 (close to 50 DMA resistance).
👍 Positive
- Quarterly PAT growth of 140% YoY (₹736 Cr vs ₹512 Cr).
- Low debt-to-equity ratio (0.11) ensures balance sheet strength.
- PEG ratio of 0.48 indicates undervaluation relative to growth.
- EPS of ₹5,123 reflects strong earnings capacity.
⚠️ Limitation
- RSI below 40 shows weak momentum.
- MACD negative, confirming bearish trend.
- Trading volume lower than weekly average, showing weak participation.
- Dividend yield is minimal at 0.18%.
📰 Company Negative News
- Decline in FII (-0.20%) and DII (-0.25%) holdings signals reduced institutional confidence.
🌟 Company Positive News
- Strong quarterly PAT surge from ₹512 Cr to ₹736 Cr.
- ROCE at 13.8% indicates efficient capital use.
🏭 Industry
- Industry PE at 24.0, aligned with MRF’s PE of 24.6, showing fair valuation.
- Tyre sector demand remains cyclical but supported by infrastructure and auto growth.
✅ Conclusion
MRF is fundamentally strong but technically weak at present. It is a fair candidate for swing trading if entered near ₹1,25,000 with an exit around ₹1,35,000 – ₹1,37,000. Watch for volume recovery and MACD crossover before aggressive entry.