M&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | M&M | Market Cap | 3,99,528 Cr. | Current Price | 3,214 ₹ | High / Low | 3,840 ₹ |
| Stock P/E | 26.0 | Book Value | 535 ₹ | Dividend Yield | 0.79 % | ROCE | 27.0 % |
| ROE | 20.8 % | Face Value | 5.00 ₹ | DMA 50 | 3,408 ₹ | DMA 200 | 3,389 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.44 % | PAT Qtr | 4,288 Cr. | PAT Prev Qtr | 4,559 Cr. |
| RSI | 45.0 | MACD | -113 | Volume | 38,90,241 | Avg Vol 1Wk | 56,86,094 |
| Low price | 2,360 ₹ | High price | 3,840 ₹ | PEG Ratio | 0.76 | Debt to equity | 0.02 |
| 52w Index | 57.7 % | Qtr Profit Var | 41.6 % | EPS | 115 ₹ | Industry PE | 29.0 |
📊 Chart & Trend: M&M trades at ₹3,214, below both its 50 DMA (₹3,408) and 200 DMA (₹3,389). This indicates short-term and medium-term weakness, with the stock struggling to regain upward momentum.
📉 Momentum Indicators: RSI at 45.0 shows neutral momentum, leaning toward bearish. MACD at -113 confirms downward pressure. Bollinger Bands suggest price is near the lower band, with support around ₹3,150–₹3,200.
📈 Volume Trends: Current volume (38.9 lakh) is lower than the 1-week average (56.8 lakh), reflecting reduced participation and lack of strong buying interest.
🔑 Entry Zone: ₹3,150–₹3,200 (near support and oversold levels).
🚪 Exit Zone: ₹3,380–₹3,420 (near resistance and 200 DMA).
📌 Trend Status: The stock is in consolidation with bearish bias, showing weakness across moving averages but potential support emerging near ₹3,150.
Positive
- EPS at ₹115 indicates strong earnings power.
- ROCE (27%) and ROE (20.8%) show excellent efficiency.
- PEG ratio at 0.76 suggests reasonable valuation relative to growth.
- DII holdings increased (+0.44%), showing domestic institutional support.
- Debt-to-equity ratio at 0.02 reflects negligible leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- Dividend yield at 0.79% is modest compared to peers.
- 52-week index at 57.7% shows moderate underperformance.
Company Negative News
- FII holdings decreased (-0.55%), showing reduced foreign investor confidence.
- Sequential PAT declined (₹4,559 Cr → ₹4,288 Cr).
Company Positive News
- Strong efficiency ratios (ROCE, ROE) support long-term fundamentals.
- DII stake increased, reflecting domestic institutional confidence.
Industry
- Auto sector PE at 29.0, slightly higher than M&M’s valuation of 26.0, suggesting relative undervaluation.
- Sector rotation favors auto leaders with strong efficiency and earnings visibility.
Conclusion
⚖️ M&M is consolidating with bearish short-term signals, trading below key averages. Entry near ₹3,150–₹3,200 offers margin of safety, while exits around ₹3,380–₹3,420 provide profit-taking opportunities. Despite weak technicals and reduced FII support, strong efficiency ratios, low debt, and reasonable valuation relative to peers support long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with Tata Motors, Maruti Suzuki, and Ashok Leyland to highlight M&M’s relative strength within the auto sector?