M&MFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | M&MFIN | Market Cap | 44,667 Cr. | Current Price | 321 ₹ | High / Low | 412 ₹ |
| Stock P/E | 17.4 | Book Value | 166 ₹ | Dividend Yield | 2.02 % | ROCE | 9.09 % |
| ROE | 12.3 % | Face Value | 2.00 ₹ | DMA 50 | 359 ₹ | DMA 200 | 326 ₹ |
| Chg in FII Hold | -0.48 % | Chg in DII Hold | 0.05 % | PAT Qtr | 899 Cr. | PAT Prev Qtr | 569 Cr. |
| RSI | 32.9 | MACD | -12.5 | Volume | 23,04,680 | Avg Vol 1Wk | 20,34,940 |
| Low price | 232 ₹ | High price | 412 ₹ | PEG Ratio | 0.52 | Debt to equity | 4.99 |
| 52w Index | 49.7 % | Qtr Profit Var | -0.02 % | EPS | 17.8 ₹ | Industry PE | 17.2 |
📊 Chart & Trend: M&M Financial trades at ₹321, below both its 50 DMA (₹359) and 200 DMA (₹326). This indicates short-term and medium-term weakness, with the stock struggling to hold above key averages.
📉 Momentum Indicators: RSI at 32.9 shows the stock is oversold, suggesting potential support and a possible rebound. MACD at -12.5 confirms bearish momentum. Bollinger Bands suggest price is near the lower band, with support around ₹315–₹320.
📈 Volume Trends: Current volume (23 lakh) is higher than the 1-week average (20 lakh), indicating increased activity, likely driven by selling pressure.
🔑 Entry Zone: ₹315–₹325 (near support and oversold RSI levels).
🚪 Exit Zone: ₹355–₹365 (near resistance and 50 DMA).
📌 Trend Status: The stock is reversing downward with strong bearish signals, though oversold RSI suggests a possible short-term bounce.
Positive
- EPS at ₹17.8 indicates steady earnings.
- Dividend yield at 2.02% provides income stability.
- PEG ratio at 0.52 suggests reasonable valuation relative to growth.
- Sequential PAT growth (₹569 Cr → ₹899 Cr) highlights profitability momentum.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- ROCE (9.09%) and ROE (12.3%) show modest efficiency.
- Debt-to-equity ratio at 4.99 indicates high leverage.
- 52-week index at 49.7% shows moderate underperformance.
Company Negative News
- FII holdings decreased (-0.48%), showing reduced foreign investor confidence.
- High debt levels add financial risk.
Company Positive News
- Sequential PAT growth supports earnings strength.
- DII stake increased slightly (+0.05%), showing domestic institutional support.
Industry
- NBFC sector PE at 17.2, close to M&M Financial’s valuation of 17.4.
- Sector rotation remains cautious, with focus on credit quality and leverage management.
Conclusion
⚖️ M&M Financial is reversing downward with bearish short-term signals, trading below key averages. Entry near ₹315–₹325 offers margin of safety for short-term bounce trades, while exits around ₹355–₹365 provide profit-taking opportunities. Despite weak technicals and high leverage, steady earnings, dividend yield, and reasonable PEG ratio support long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with Bajaj Finance, Shriram Finance, and L&T Finance to highlight M&M Financial’s relative strength and valuation within the NBFC sector?