⚠ 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.
VMM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | VMM | Market Cap | 56,454 Cr. | Current Price | 121 ₹ | High / Low | 158 ₹ |
| Stock P/E | 94.6 | Book Value | 14.2 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 7.62 % | Face Value | 10.0 ₹ | DMA 50 | 130 ₹ | DMA 200 | 132 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.05 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 35.8 | MACD | -3.01 | Volume | 64,27,222 | Avg Vol 1Wk | 96,22,300 |
| Low price | 96.0 ₹ | High price | 158 ₹ | PEG Ratio | 2.92 | Debt to equity | 0.02 |
| 52w Index | 40.0 % | Qtr Profit Var | 40.1 % | EPS | 1.28 ₹ | Industry PE | 40.7 |
📊 VMM shows weak-to-moderate potential for swing trading. While recent profit growth and low debt provide some positives, the stock is highly overvalued with weak technical momentum. Entry is only advisable near strong support levels, while exits should be timed around resistance zones.
Positive ✅
- Quarterly PAT growth (182 Cr. vs 131 Cr.) with +40.1% variation shows earnings improvement.
- Low debt-to-equity ratio (0.02) indicates strong financial stability.
- FII (+0.12%) and DII (+0.05%) holdings show slight institutional support.
- Strong 52-week performance (+40%) highlights investor confidence.
Limitation ⚠️
- Extremely high P/E ratio (94.6) compared to industry average (40.7), suggesting overvaluation.
- EPS of 1.28 ₹ is weak relative to valuation.
- No dividend yield, reducing shareholder returns.
- RSI at 35.8 indicates oversold conditions, reflecting weak momentum.
- MACD (-3.01) signals bearish trend continuation.
- Current price (121 ₹) below both 50 DMA (130 ₹) and 200 DMA (132 ₹), showing technical weakness.
- Trading volume lower than weekly average, reducing short-term momentum strength.
Company Negative News ❌
- High valuation with poor earnings efficiency (ROCE 10.1%, ROE 7.62%).
- No dividend payout despite strong market cap.
Company Positive News 🌟
- Quarterly profit growth (+40.1%) highlights operational improvement.
- Low leverage ensures financial safety.
Industry 📈
- Industry P/E at 40.7 is much lower, highlighting sector stability compared to VMM’s valuation.
- Sector demand remains steady, supporting long-term growth potential.
Conclusion 📝
VMM is a risky swing trade candidate due to overvaluation and weak technicals. Optimal entry would be near 110–115 ₹ support if RSI stabilizes. For existing holders, consider exiting around 130–135 ₹ (near DMA resistance) on rebounds, as upside is capped by high valuation and weak momentum.