VMM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.9

📊 Analysis Summary

Vishnu Malhotra Motors (VMM) is currently showing strong institutional interest, positive technical momentum, and high relative strength, making it a decent candidate for swing trading. However, its extremely high valuation and recent profit decline warrant a cautious approach.

✅ Strengths

MACD: +2.38 & RSI: 54.2

Positive momentum — trend is upward but not overheated.

Trading Above DMA 50 & 200 (₹131 & ₹119)

Technically strong — confirms bullish bias.

FII & DII Holding ↑ (5.82% & 15.1%)

Strong institutional accumulation — high confidence.

Quarterly PAT Growth (YoY): +88%

Strong annual earnings momentum.

Volume: 1.62 Cr — near average

Healthy liquidity — supports swing setups.

52W Index: 85.7%

Near yearly high — strong relative strength.

⚠️ Weaknesses

P/E: 101 vs Industry PE: 63.7

Extremely overvalued — priced for aggressive growth.

PEG Ratio: 2.14

Expensive even on growth-adjusted basis.

Book Value: ₹13.9 vs CMP ₹137

High premium — not suitable for value entry.

Dividend Yield: 0.00%

No income cushion — purely growth play.

Quarterly PAT Decline: –56% (₹263 Cr → ₹115 Cr)

Recent earnings drop — short-term concern.

🎯 Optimal Entry Price

Entry Zone: ₹132–₹135

Slight pullback from current level offers better risk-reward.

Confirmation: Look for MACD to remain positive and RSI to stay below 65.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹142–₹145

Near recent high — good level to book profits.

Stop Loss: ₹128

Below DMA 50 — protects against trend reversal.

Would you like to explore other auto or mid-cap growth stocks with better valuation metrics for swing trading?

Edit in a page