VMM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.8

🏢 VMM Swing Trade Analysis

VMM shows a moderately strong swing trade setup, backed by improving earnings, strong institutional interest, and technical support. However, high valuation and modest efficiency metrics suggest a cautious approach.

✅ Strengths

Earnings Momentum

PAT Growth: ₹107 Cr. → ₹177 Cr. — up 35.2%, signaling strong quarterly performance.

EPS: ₹1.13 — supports valuation at current levels.

Technical Setup

MACD: 1.44 — bullish crossover, indicating upward momentum.

Price Above DMA 50 & 200: Current price ₹146 is above DMA 50 (₹144) and DMA 200 (₹127), confirming trend strength.

Institutional Sentiment

FII Holding Up: +5.82%

DII Holding Up: +15.1% — strong institutional confidence.

Financial Health

Debt-to-Equity: 0.02 — virtually debt-free.

ROCE: 10.1% / ROE: 7.62% — modest but stable.

⚠️ Risks

High P/E (132) vs Industry PE (76.6) — significantly overvalued.

PEG Ratio: 4.07 — growth doesn’t justify valuation.

RSI: 46.2 — neutral zone, lacking strong momentum.

Volume Slightly Below Average — current volume is ~7% lower than 1-week average.

Dividend Yield: 0.00% — no income support.

52W Index: 81.5% — near yearly high, limiting upside potential.

🎯 Trade Strategy

Optimal Entry Price: ₹142–₹145

Enter near 50 DMA if RSI trends upward and volume improves.

Exit Plan (If Holding)

Target Exit: ₹155–₹158

Conservative target near recent high.

Stop Loss: ₹138

Below 50 DMA to manage downside risk.

VMM is a fair swing candidate for momentum-driven traders who can manage valuation risk and monitor technical confirmation. Let me know if you'd like to compare it with other mid-cap growth stocks.

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