VMM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.5

📊 VMM offers a cautious swing trade setup with improving earnings and strong volume, but valuation concerns persist. Optimal entry is ₹140–₹144. If already held, consider exiting near ₹152–₹156.

📈 Positive

• Quarterly PAT growth from ₹107 Cr. to ₹177 Cr. shows strong earnings momentum.
• EPS of ₹1.13 and Qtr Profit Var of 35.2% reflect improving profitability.
• FII holdings increased by 2.55%, indicating rising foreign investor confidence.
• Debt-to-equity ratio (0.02) shows excellent financial discipline.
• Volume significantly above 1-week average signals strong market interest.

⚠️ Limitation

• MACD (-1.01) and RSI (40.9) suggest weak momentum and limited bullish signals.
• P/E (129) is extremely high compared to industry average (51.5), indicating overvaluation.
• PEG ratio (3.99) implies expensive pricing relative to growth.
• ROCE (10.1%) and ROE (7.62%) are modest, reflecting average capital efficiency.
• No dividend yield reduces short-term holding incentive.

🚫 Company Negative News

• DII holdings declined by 1.89%, showing reduced domestic institutional interest.

✅ Company Positive News

• Strong quarterly earnings and rising FII interest support short-term upside potential.
• Stock trading near 50-DMA (₹146) and above 200-DMA (₹133) offers technical support.

🌐 Industry

• VMM operates in the media and entertainment sector, which is cyclical and driven by consumer sentiment and digital trends.
• Industry P/E of 51.5 reflects moderate valuation expectations.

🧾 Conclusion

• VMM is a cautious swing trade candidate with strong earnings momentum but valuation risks.
• Optimal entry: ₹140–₹144 (near support and RSI zone).
• Exit target: ₹152–₹156 (near recent resistance and high).
• Watch for MACD reversal and RSI strength to confirm momentum.

I can help you compare VMM’s setup with other media stocks to identify stronger swing trade opportunities.