MSUMI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | MSUMI | Market Cap | 28,123 Cr. | Current Price | 42.3 ₹ | High / Low | 53.6 ₹ |
| Stock P/E | 45.2 | Book Value | 2.78 ₹ | Dividend Yield | 1.34 % | ROCE | 42.5 % |
| ROE | 35.9 % | Face Value | 1.00 ₹ | DMA 50 | 45.7 ₹ | DMA 200 | 44.0 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | 0.58 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 165 Cr. |
| RSI | 38.0 | MACD | -1.26 | Volume | 23,12,471 | Avg Vol 1Wk | 66,75,758 |
| Low price | 30.7 ₹ | High price | 53.6 ₹ | PEG Ratio | 4.58 | Debt to equity | 0.14 |
| 52w Index | 50.6 % | Qtr Profit Var | 6.76 % | EPS | 0.94 ₹ | Industry PE | 28.0 |
📊 Chart & Trend Analysis:
The stock is currently trading at ₹42.3, below both its 50 DMA (₹45.7) and 200 DMA (₹44.0), indicating short-term weakness. RSI at 38 suggests the stock is approaching oversold territory, while MACD at -1.26 confirms bearish momentum. Bollinger Bands show price near the lower band, hinting at potential support but weak momentum. Volume is significantly below the 1-week average, reflecting reduced participation and lack of strong buying interest.
📈 Momentum Signals:
- Short-term momentum is weak with bearish bias.
- RSI near oversold zone may trigger a technical bounce.
- MACD negative crossover confirms downward trend continuation.
- Low volume indicates lack of conviction in current moves.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹40.0 – ₹41.0 (near support, oversold RSI).
- Exit Zone: ₹46.0 – ₹47.0 (resistance at 50 DMA).
- Stop Loss: ₹39.0 (below key support).
📌 Trend Status: Consolidating with bearish bias. Price is holding above long-term support (₹40) but failing to break resistance levels.
Positive
- Strong ROCE (42.5%) and ROE (35.9%) indicate efficient capital use.
- Low debt-to-equity ratio (0.14) ensures financial stability.
- Dividend yield of 1.34% provides steady income.
Limitation
- High P/E (45.2) compared to industry average (28.0) suggests overvaluation.
- PEG ratio of 4.58 indicates expensive growth prospects.
- Quarterly PAT declined from ₹165 Cr. to ₹149 Cr., showing earnings pressure.
Company Negative News
- Decline in quarterly profits signals margin pressure.
- FII holding decreased (-0.13%), showing reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.58%), reflecting domestic institutional support.
- Stable dividend payout and strong return ratios highlight resilience.
Industry
- Industry P/E at 28.0 is lower than company’s valuation, suggesting sector peers may be more attractively priced.
- Automotive component sector is cyclical, influenced by demand recovery and global supply chain trends.
Conclusion
⚖️ MSUMI is currently consolidating with bearish momentum, trading below key moving averages. While fundamentals show strong efficiency and low debt, valuation remains stretched and earnings have softened. Short-term traders may look for entry near ₹40–₹41 with exits around ₹46–₹47, while long-term investors should wait for earnings stability and better valuation alignment with industry peers.