MSUMI - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 Optimal Entry Price: ₹45.0–₹46.0 (near 50 DMA and RSI support)

📈 Exit Strategy (if holding): ₹50.0–₹50.5 (near recent high and resistance)

🔷 Positive

• 📈 ROCE (42.5%) and ROE (35.9%): Indicate excellent capital efficiency and profitability.
• 📈 MACD at 0.42: Suggests bullish crossover and positive momentum.
• 📈 Trading above DMA 50 and 200: Reflects strong technical trend.
• 📈 DII holding increased by 0.35%: Indicates growing domestic institutional confidence.
• 💰 Dividend yield of 1.21%: Offers modest income potential.

⚠️ Limitation

• 📉 High P/E of 51.9: Well above industry average (32.8), suggesting overvaluation.
• 📉 PEG ratio of 5.27: Indicates expensive valuation relative to growth.
• 📉 Quarterly PAT declined 3.88%: From ₹165 Cr. to ₹143 Cr., showing earnings pressure.
• 📉 FII holding dropped by 0.10%: Reflects slight foreign investor caution.
• 📉 EPS of ₹0.90: Indicates low earnings per share despite high valuation.

📉 Company Negative News

• 📉 Q2FY26 earnings showed a slight dip in profitability, raising concerns over margin sustainability.
• 📉 Analysts flagged valuation concerns due to high P/E and low EPS growth.

📈 Company Positive News

• 📈 MSUMI continues to benefit from strong demand in the auto wiring harness segment and EV components.
• 📊 Management remains optimistic about export growth and new order wins from global OEMs.

🚗 Industry

• 🏭 Operates in the auto components sector, which is gaining from rising vehicle production and EV adoption.
• 📈 Industry P/E of 32.8 suggests MSUMI trades at a premium, likely due to its global footprint and product mix.

🧾 Conclusion

• ⚠️ MSUMI is a moderately strong swing trade candidate with solid technicals and sector tailwinds, but valuation concerns and earnings pressure.
• 📌 Entry near ₹45.0–₹46.0 offers a favorable risk-reward setup if momentum sustains.
• 🚪 If already holding, consider exiting near ₹50.0–₹50.5, aligning with resistance and recent highs.

I can also compare MSUMI with other auto component peers like Minda Corp or Sona BLW to help refine your swing strategy.