MRF - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Optimal Entry Price: ₹1,53,000–₹1,55,000 (near 50 DMA support)

📉 Exit Strategy (if holding): ₹1,62,000–₹1,63,500 (recent resistance zone)

🔷 Positive

• 📊 Strong EPS of ₹4,113: Indicates solid earnings performance.
• 📈 MACD at 1,875: Suggests bullish momentum.
• 📉 PEG ratio of 0.76: Reasonable valuation relative to growth.
• 📈 Trading above DMA 50 & DMA 200: Indicates technical strength and trend continuation.
• 📊 Low debt-to-equity ratio (0.13): Reflects financial stability.

⚠️ Limitation

• 📉 High P/E of 38.4: Above industry average (31.9), may indicate overvaluation.
• 📉 Low dividend yield (0.15%): Not attractive for income-focused investors.
• 📉 Decline in quarterly profit (-13.9%): Indicates short-term earnings pressure.
• 📉 FII holding dropped by 0.40%: May reflect cautious foreign sentiment.

📉 Company Negative News

• 📰 MRF reported a YoY decline in Q3 FY25 profit, raising concerns over margin pressure and input costs.

📈 Company Positive News

• 📊 MRF stock gained momentum on expectations of a GST cut for tyres, which could improve margins.
• 📈 Analysts remain optimistic about tyre sector demand during the festive and wedding season.

🚗 Industry

• 🛞 MRF operates in the tyre and rubber products segment, which benefits from rising auto demand and infrastructure push.
• 📈 Industry P/E of 31.9 suggests MRF is slightly overvalued but still within a competitive range.

🧾 Conclusion

• ✅ MRF is a moderately strong swing trade candidate with technical momentum and sector tailwinds.
• 📌 Entry near ₹1,53,000–₹1,55,000 offers a favorable setup with support from DMA levels.
• 🚪 If already holding, consider exiting near ₹1,62,000–₹1,63,500, aligning with resistance and recent highs.

I can also chart MRF’s price action and volume trends to visualize its swing potential—just say the word.