⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

MSUMI - Swing Trade Analysis with AI Signals

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Rating: 3.7

Last Updated Time : 04 Feb 26, 02:09 am

Swing Trade Rating: 3.7

Stock Code MSUMI Market Cap 29,863 Cr. Current Price 45.0 ₹ High / Low 53.6 ₹
Stock P/E 48.0 Book Value 2.78 ₹ Dividend Yield 1.26 % ROCE 42.5 %
ROE 35.9 % Face Value 1.00 ₹ DMA 50 45.6 ₹ DMA 200 44.0 ₹
Chg in FII Hold -0.13 % Chg in DII Hold 0.58 % PAT Qtr 149 Cr. PAT Prev Qtr 165 Cr.
RSI 49.8 MACD -1.01 Volume 1,01,54,982 Avg Vol 1Wk 72,94,581
Low price 30.7 ₹ High price 53.6 ₹ PEG Ratio 4.87 Debt to equity 0.14
52w Index 62.4 % Qtr Profit Var 6.76 % EPS 0.94 ₹ Industry PE 29.0

📊 MSUMI shows moderate potential for swing trading. The stock is currently at 45.0 ₹, close to its 50 DMA (45.6 ₹) and slightly above its 200 DMA (44.0 ₹), suggesting neutral momentum. RSI at 49.8 indicates balanced conditions, while MACD at -1.01 reflects mild bearish sentiment. Strong fundamentals (ROCE 42.5%, ROE 35.9%) support the company, but high valuation metrics (P/E 48.0 vs industry 29.0, PEG 4.87) limit upside potential.

✅ Optimal Entry Price: 44.0–45.0 ₹ (near 200 DMA support)

🚪 Exit Strategy (if already holding): Target 52.0–53.0 ₹ resistance zone for profit booking, or exit if price breaks below 43.5 ₹ with strong volume.

Positive

  • 💡 Strong ROCE (42.5%) and ROE (35.9%) highlight efficient capital use.
  • 📈 Dividend yield of 1.26% adds investor confidence.
  • 📊 Current trading volume exceeds weekly average, showing active participation.
  • 💰 Low debt-to-equity ratio (0.14) ensures financial stability.

Limitation

  • ⚠️ High P/E (48.0) compared to industry average (29.0).
  • 📉 PEG ratio of 4.87 suggests overvaluation relative to growth.
  • 🔻 EPS at 0.94 ₹ is modest given valuation.

Company Negative News

  • 📉 Quarterly PAT declined (165 Cr. → 149 Cr.).
  • 🚫 FII holding decreased by -0.13%.

Company Positive News

  • 📊 DII holding increased by 0.58%, showing domestic confidence.
  • 📦 Stable profitability with Qtr Profit Var at 6.76%.

Industry

  • 🏭 Industry P/E at 29.0 indicates sector is moderately valued.
  • 📦 Auto ancillary sector benefits from cyclical demand recovery.

Conclusion

⚖️ MSUMI is fundamentally strong but trading at stretched valuations. For swing trading, entry near 44.0–45.0 ₹ offers a favorable risk-reward setup, with exit targets around 52.0–53.0 ₹. Caution advised if price falls below 43.5 ₹, as momentum could turn negative.

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