VMM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | VMM | Market Cap | 58,450 Cr. | Current Price | 125 ₹ | High / Low | 158 ₹ |
| Stock P/E | 97.9 | Book Value | 14.2 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 7.62 % | Face Value | 10.0 ₹ | DMA 50 | 118 ₹ | DMA 200 | 125 ₹ |
| Chg in FII Hold | 6.49 % | Chg in DII Hold | 7.27 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 61.6 | MACD | 3.43 | Volume | 50,63,587 | Avg Vol 1Wk | 89,95,816 |
| Low price | 98.7 ₹ | High price | 158 ₹ | PEG Ratio | 3.02 | Debt to equity | 0.02 |
| 52w Index | 45.0 % | Qtr Profit Var | 40.1 % | EPS | 1.28 ₹ | Industry PE | 46.4 |
The stock demonstrates strong momentum with quarterly profit growth (PAT 182 Cr vs 131 Cr, +40.1%) and rising institutional interest (FII +6.49%, DII +7.27%). However, valuations are stretched (P/E 97.9 vs Industry P/E 46.4), and fundamentals like ROCE (10.1%) and ROE (7.62%) are relatively weak. Technicals show moderate strength (RSI 61.6, MACD positive), suggesting potential for short-term swing trades but with caution.
🎯 Optimal Entry Price
Entry is favorable near 118–120 ₹ (close to 50 DMA support). Current price of 125 ₹ is slightly above support but still acceptable for momentum traders.
📤 Exit Strategy
If already holding, consider booking profits near 140–145 ₹. A stop-loss around 115 ₹ is advisable to protect downside risk.
✅ Positive
- Strong quarterly profit growth (+40.1%).
- Institutional buying support (FII +6.49%, DII +7.27%).
- Low debt-to-equity ratio (0.02).
⚠️ Limitation
- High valuation compared to industry peers (P/E 97.9 vs 46.4).
- Weak ROCE (10.1%) and ROE (7.62%).
- EPS remains low (1.28 ₹).
📰 Company Negative News
- No major negative news reported, but valuation concerns remain.
🌟 Company Positive News
- Strong quarterly earnings momentum.
- Institutional investors increasing stake, signaling confidence.
🏭 Industry
- Industry P/E at 46.4, much lower than company’s 97.9, suggesting overvaluation.
- Sector growth is steady, but valuations are stretched across peers.
📌 Conclusion
The stock shows strong momentum and institutional support, making it a moderate candidate for swing trading. Entry near 118–120 ₹ is optimal, while profit booking around 140–145 ₹ is recommended. Caution is advised due to stretched valuations and weaker fundamentals.