MSUMI - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.5
| Stock Code | MSUMI | Market Cap | 24,684 Cr. | Current Price | 37.3 ₹ | High / Low | 53.6 ₹ |
| Stock P/E | 39.6 | Book Value | 2.78 ₹ | Dividend Yield | 1.52 % | ROCE | 42.5 % |
| ROE | 35.9 % | Face Value | 1.00 ₹ | DMA 50 | 42.6 ₹ | DMA 200 | 43.4 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | 0.58 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 165 Cr. |
| RSI | 24.5 | MACD | -1.43 | Volume | 1,80,40,322 | Avg Vol 1Wk | 1,19,98,501 |
| Low price | 31.3 ₹ | High price | 53.6 ₹ | PEG Ratio | 4.02 | Debt to equity | 0.14 |
| 52w Index | 26.7 % | Qtr Profit Var | 6.76 % | EPS | 0.94 ₹ | Industry PE | 23.7 |
Analysis: MSUMI currently trades at 37.3 ₹, well below its 50 DMA (42.6 ₹) and 200 DMA (43.4 ₹), reflecting weak momentum. RSI at 24.5 shows oversold conditions, but MACD (-1.43) confirms bearish sentiment. The high P/E (39.6 vs industry 23.7) and PEG ratio (4.02) suggest overvaluation. While fundamentals like ROCE (42.5%) and ROE (35.9%) are strong, short-term technicals make this a risky swing trade candidate.
Optimal Entry Price: Around 33–34 ₹, near support levels and closer to the 52-week low of 31.3 ₹.
Exit Strategy (if already holding): Consider exiting near 42–43 ₹ (DMA resistance zone) if recovery occurs. Place a stop-loss below 31 ₹ to protect against further downside.
✅ Positive
- High ROCE (42.5%) and ROE (35.9%) show strong efficiency.
- Low debt-to-equity ratio (0.14) indicates financial stability.
- Dividend yield of 1.52% adds investor appeal.
⚠️ Limitation
- Valuation is stretched (P/E 39.6 vs industry 23.7).
- Technical indicators are weak (RSI oversold, MACD negative).
- Quarterly PAT declined from 165 Cr. to 149 Cr.
📉 Company Negative News
- Quarterly profit decline signals slowing growth.
- FII holdings decreased (-0.13%).
📈 Company Positive News
- DII holdings increased (+0.58%), showing domestic confidence.
- Consistent dividend payout supports investor trust.
🏭 Industry
- Industry P/E is lower (23.7), making MSUMI relatively expensive.
- Automotive sector faces cyclical demand but benefits from electrification trends.
🔎 Conclusion
MSUMI has strong fundamentals but weak technicals, making it a poor swing trade candidate at present. Oversold RSI may trigger a short-term bounce, but high valuation and declining profits limit upside potential. Safer entry is near 33–34 ₹, with exit around 42–43 ₹ if holding. Better suited for long-term investors than short-term swing traders.