3MINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | 3MINDIA | Market Cap | 37,529 Cr. | Current Price | 33,300 ₹ | High / Low | 38,300 ₹ |
| Stock P/E | 115 | Book Value | 1,430 ₹ | Dividend Yield | 0.48 % | ROCE | 38.2 % |
| ROE | 23.8 % | Face Value | 10.0 ₹ | DMA 50 | 32,822 ₹ | DMA 200 | 32,782 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | -0.05 % | PAT Qtr | -113 Cr. | PAT Prev Qtr | 191 Cr. |
| RSI | 57.6 | MACD | 207 | Volume | 1,901 | Avg Vol 1Wk | 4,630 |
| Low price | 27,830 ₹ | High price | 38,300 ₹ | PEG Ratio | 5.31 | Debt to equity | 0.06 |
| 52w Index | 52.2 % | Qtr Profit Var | -199 % | EPS | 336 ₹ | Industry PE | 27.1 |
📈 Chart Patterns & Trend: The stock is trading slightly above both 50 DMA (₹32,822) and 200 DMA (₹32,782), indicating near-term stability. RSI at 57.6 suggests mild bullish momentum. MACD at 207 shows positive divergence, but volumes are weak (1,901 vs avg 4,630), limiting conviction. Bollinger Bands suggest consolidation with potential for breakout if volumes improve.
🔑 Momentum Signals: RSI above 55 indicates moderate strength. MACD positive supports bullish bias. However, low trading volumes weaken momentum confirmation.
🎯 Entry Zone: ₹32,000 – ₹32,800 (support levels)
💰 Exit Zone: ₹36,500 – ₹37,500 (resistance levels)
📊 Status: Consolidating with mild bullish bias; potential breakout if earnings stabilize and volumes rise.
Positive
- Strong fundamentals: ROCE 38.2%, ROE 23.8%
- Low debt-to-equity (0.06) ensures financial stability
- EPS at ₹336 reflects strong long-term profitability
- Stock trading above both 50 DMA and 200 DMA
Limitation
- Extremely high P/E (115) vs industry average (27.1)
- Quarterly PAT turned negative (-₹113 Cr vs ₹191 Cr)
- Weak trading volumes reduce breakout potential
- Valuation stretched despite fundamentals
Company Negative News
- Quarterly profit declined sharply (-199% YoY)
- DII holdings decreased (-0.05%)
Company Positive News
- Strong historical EPS and dividend payout (0.48% yield)
- FII holdings marginally increased (+0.02%)
Industry
- Industry PE at 27.1 highlights sector stability
- Peers trading at lower multiples, making 3M India appear overvalued
Conclusion
⚠️ 3M India shows strong fundamentals with excellent ROE/ROCE and low debt, but current valuations are stretched. Technicals suggest consolidation with mild bullish bias. Best suited for cautious accumulation near ₹32,000–₹32,800 with upside potential toward ₹36,500–₹37,500 if earnings recover. Weak volumes and negative quarterly PAT remain key risks.
Would you like me to extend this with a benchmark overlay against peers like Honeywell Automation and ABB India so you can see how 3M India stacks up in valuation and momentum terms?