MANAPPURAM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📈 Chart Patterns & Trend: MANAPPURAM is trading at ₹292, above both its 50 DMA (₹280) and 200 DMA (₹259). This indicates a strong uptrend with bullish momentum, as the stock is near its 52-week high of ₹298.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹280 (50 DMA) and ₹259 (200 DMA), while resistance is around ₹298.

📉 RSI: At 57.2, RSI is in the bullish zone but not overbought, suggesting room for further upside.

📈 MACD: Positive MACD (1.67) signals bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹298. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (44.9L) is significantly higher than the weekly average (28.8L), showing strong buying interest and confirming bullish sentiment.

🎯 Entry Zone: ₹280–₹285 (near support)

🚪 Exit Zone: ₹295–₹300 (near resistance/high)

Positive

• Stock trading above both 50 DMA and 200 DMA confirms bullish momentum.
• EPS of ₹19.3 shows consistent earnings performance.
• FII (+0.45%) and DII (+0.56%) holdings increased, reflecting strong institutional confidence.
• Dividend yield of 1.21% provides steady income for investors.

Limitation

• High debt-to-equity ratio (2.51) increases financial risk.
• Quarterly PAT dropped from ₹392 Cr. to ₹376 Cr. (-20.9%).
• ROCE (13.1%) is moderate compared to industry leaders.
• PEG ratio of 1.42 suggests valuation is slightly expensive relative to growth.

Company Negative News

• Decline in quarterly profits raises concerns about earnings stability.
• High leverage could impact profitability in rising interest rate scenarios.

Company Positive News

• Strong institutional support with both FII and DII holdings increasing.
• Stock trading near 52-week high reflects strong market confidence.
• Consistent dividend payouts support investor sentiment.

Industry

• Industry PE at 21.2 is higher than MANAPPURAM’s PE (15.1), suggesting undervaluation compared to peers.
• NBFC sector benefits from rising credit demand and rural financing growth.

Conclusion

📌 MANAPPURAM is in a strong uptrend, trading above key moving averages with bullish MACD, supportive RSI, and strong volume. Entry near ₹280–₹285 offers favorable risk-reward, while resistance at ₹295–₹300 provides exit targets. Despite high leverage and recent profit decline, strong institutional support and undervaluation compared to industry peers make the stock attractive for medium-term bullish potential.