MARUTI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | MARUTI | Market Cap | 4,09,761 Cr. | Current Price | 13,055 ₹ | High / Low | 17,372 ₹ |
| Stock P/E | 28.2 | Book Value | 3,098 ₹ | Dividend Yield | 1.03 % | ROCE | 21.7 % |
| ROE | 15.6 % | Face Value | 5.00 ₹ | DMA 50 | 14,682 ₹ | DMA 200 | 14,653 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.29 % | PAT Qtr | 3,794 Cr. | PAT Prev Qtr | 3,303 Cr. |
| RSI | 33.5 | MACD | -621 | Volume | 5,80,784 | Avg Vol 1Wk | 9,75,945 |
| Low price | 11,059 ₹ | High price | 17,372 ₹ | PEG Ratio | 0.39 | Debt to equity | 0.00 |
| 52w Index | 31.6 % | Qtr Profit Var | 3.68 % | EPS | 462 ₹ | Industry PE | 29.0 |
📊 Chart & Trend: Maruti trades at ₹13,055, well below its 50 DMA (₹14,682) and 200 DMA (₹14,653). This indicates short-term and medium-term weakness, with the stock struggling to regain upward momentum after recent declines.
📉 Momentum Indicators: RSI at 33.5 shows the stock is approaching oversold territory, suggesting potential support but no strong reversal yet. MACD at -621 confirms bearish momentum. Bollinger Bands suggest price is near the lower band, with support around ₹12,800–₹13,000.
📈 Volume Trends: Current volume (5.8 lakh) is lower than the 1-week average (9.7 lakh), reflecting reduced participation and lack of strong buying interest.
🔑 Entry Zone: ₹12,800–₹13,000 (near support and oversold RSI levels).
🚪 Exit Zone: ₹14,600–₹14,700 (near resistance and 200 DMA).
📌 Trend Status: The stock is reversing downward with strong bearish signals, though oversold RSI suggests a possible short-term bounce.
Positive
- EPS at ₹462 indicates strong earnings power.
- ROCE (21.7%) and ROE (15.6%) show solid efficiency.
- PEG ratio at 0.39 suggests undervaluation relative to growth.
- DII holdings increased (+0.29%), showing domestic institutional support.
- Debt-to-equity ratio at 0.00 reflects zero leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- Dividend yield at 1.03% is modest compared to peers.
- 52-week index at 31.6% shows significant underperformance.
Company Negative News
- FII holdings decreased (-0.02%), showing reduced foreign investor confidence.
- Sequential PAT growth slowed (₹3,303 Cr → ₹3,794 Cr, only +3.68%).
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 Maruti’s valuation of 28.2, suggesting relative fair valuation.
- Sector rotation favors auto leaders with strong efficiency and earnings visibility, but momentum remains cautious.
Conclusion
⚖️ Maruti is reversing downward with bearish short-term signals, trading below key averages. Entry near ₹12,800–₹13,000 offers margin of safety, while exits around ₹14,600–₹14,700 provide profit-taking opportunities. Despite weak technicals and reduced FII support, strong efficiency ratios, low debt, and fair valuation relative to peers support long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with Tata Motors, M&M, and Hyundai (India operations) to highlight Maruti’s relative valuation and technical strength within the auto sector?