VMM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | VMM | Market Cap | 55,083 Cr. | Current Price | 118 ₹ | High / Low | 158 ₹ |
| Stock P/E | 84.0 | Book Value | 15.0 ₹ | Dividend Yield | 0.00 % | ROCE | 13.2 % |
| ROE | 9.92 % | Face Value | 10.0 ₹ | DMA 50 | 119 ₹ | DMA 200 | 124 ₹ |
| Chg in FII Hold | 6.49 % | Chg in DII Hold | 7.27 % | PAT Qtr | 167 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 46.0 | MACD | -0.54 | Volume | 58,37,512 | Avg Vol 1Wk | 98,19,604 |
| Low price | 98.7 ₹ | High price | 158 ₹ | PEG Ratio | 2.17 | Debt to equity | 0.02 |
| 52w Index | 32.5 % | Qtr Profit Var | 55.2 % | EPS | 1.40 ₹ | Industry PE | 33.9 |
📊 VMM shows weak fundamentals with stretched valuations and declining profits. The RSI at 46.0 indicates neutral-to-weak momentum, while the MACD at -0.54 signals bearish undertones. Current price (118 ₹) is near the 50DMA (119 ₹) and below the 200DMA (124 ₹), reflecting short-term weakness. ROCE (13.2%) and ROE (9.92%) are modest, while the P/E of 84.0 vs industry average of 33.9 highlights overvaluation. Despite strong institutional interest (FII +6.49%, DII +7.27%), quarterly PAT declined from 182 Cr. to 167 Cr.
💡 Optimal Entry Price: Around 110–115 ₹ (near support zone).
📈 Exit Strategy if Holding: Consider booking profits near 125–130 ₹ resistance zone, or cut losses if price falls below 108 ₹.
Positive
- ✅ Strong institutional support: FII (+6.49%) and DII (+7.27%).
- ✅ EPS of 1.40 ₹ provides earnings visibility.
- ✅ Debt-to-equity ratio of 0.02 indicates low leverage.
- ✅ Quarterly profit variation (+55.2%) shows volatility but potential upside.
Limitation
- ⚠️ High P/E ratio (84.0 vs industry 33.9) suggests overvaluation.
- ⚠️ Weak ROCE (13.2%) and ROE (9.92%).
- ⚠️ PAT declined from 182 Cr. to 167 Cr.
- ⚠️ Price below 200DMA reflects medium-term weakness.
- ⚠️ Trading volume (58.3 lakh) below weekly average (98.1 lakh) indicates reduced participation.
Company Negative News
- 📉 Declining quarterly profits raise caution.
- 📉 Elevated valuations compared to industry peers.
Company Positive News
- 📈 Strong institutional buying (FII and DII increases).
- 📈 EPS stability provides valuation support.
Industry
- 🏭 Industry P/E at 33.9 is much lower, highlighting VMM’s premium valuation.
- 🏭 Sector outlook remains steady, but peers trade at more attractive multiples.
Conclusion
🔎 VMM is a speculative swing trade candidate with strong institutional support but weak fundamentals and stretched valuations. Entry near 110–115 ₹ offers limited risk-reward, while exits should be targeted around 125–130 ₹. Strict stop-loss discipline is essential given earnings decline and valuation risks.
Would you like me to extend this into a peer benchmarking overlay to compare VMM against sector peers, or refine it into an intraday trade setup for sharper entry/exit timing?