MANAPPURAM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | MANAPPURAM | Market Cap | 22,833 Cr. | Current Price | 270 ₹ | High / Low | 322 ₹ |
| Stock P/E | 14.6 | Book Value | 147 ₹ | Dividend Yield | 1.30 % | ROCE | 13.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 294 ₹ | DMA 200 | 270 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.98 % | PAT Qtr | 381 Cr. | PAT Prev Qtr | 376 Cr. |
| RSI | 33.9 | MACD | -3.28 | Volume | 69,04,627 | Avg Vol 1Wk | 75,64,758 |
| Low price | 169 ₹ | High price | 322 ₹ | PEG Ratio | 1.37 | Debt to equity | 2.51 |
| 52w Index | 66.2 % | Qtr Profit Var | -15.9 % | EPS | 18.5 ₹ | Industry PE | 18.9 |
📊 Chart Patterns & Trend: Manappuram Finance is trading at 270 ₹, below its 50 DMA (294 ₹) and aligned with its 200 DMA (270 ₹). This indicates a bearish consolidation with weak momentum. The stock is closer to its 52-week high (322 ₹) than its low (169 ₹), but current weakness suggests caution.
📈 RSI: At 33.9, RSI is near oversold territory, signaling potential for a short-term rebound.
📉 MACD: Negative at -3.28, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (69,04,627) is slightly lower than average weekly volume (75,64,758), showing reduced participation and lack of conviction in recent moves.
🎯 Entry Zone: 260–270 ₹ (near support and oversold RSI).
🎯 Exit Zone: 290–300 ₹ (near 50 DMA resistance).
Positive
- Market cap of 22,833 Cr. reflects strong presence in NBFC sector.
- Stock P/E of 14.6 is attractive compared to industry PE of 18.9.
- Dividend yield of 1.30% provides income return.
- ROE (16.0%) and ROCE (13.1%) highlight decent capital efficiency.
- DII holdings increased by 1.98%, showing strong domestic institutional support.
- EPS at 18.5 ₹ supports earnings visibility.
Limitation
- Stock trading below 50 DMA and at 200 DMA, showing weak momentum.
- FII holdings decreased (-1.38%), showing reduced foreign investor confidence.
- Debt-to-equity ratio at 2.51 is high, reflecting leveraged balance sheet.
- Quarterly profit variance (-15.9%) highlights operational weakness.
- RSI and MACD both indicate bearish undertone.
Company Negative News
- Quarterly profit variance of -15.9% highlights declining profitability.
- FII stake reduction shows declining foreign investor confidence.
- High leverage (Debt-to-equity ratio 2.51) raises concerns about risk exposure.
Company Positive News
- Sequential PAT growth (381 Cr. vs 376 Cr.) shows stability despite year-on-year decline.
- DII stake increase reflects strong domestic investor confidence.
- Dividend yield of 1.30% provides attractive returns for income-focused investors.
Industry
- NBFC sector trading at industry PE of 18.9, making Manappuram undervalued at P/E of 14.6.
- Sector outlook remains positive with rising demand for retail and gold-backed financing.
Conclusion
⚖️ Manappuram Finance is in a bearish consolidation phase with oversold RSI and negative MACD. Entry near 260–270 ₹ offers margin of safety, while exits around 290–300 ₹ provide profit-taking opportunities. Long-term investors may find value due to low P/E, decent ROE, and strong DII support, while short-term traders should wait for reversal signals before entering aggressively.
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