MSUMI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | MSUMI | Market Cap | 25,698 Cr. | Current Price | 38.8 ₹ | High / Low | 53.6 ₹ |
| Stock P/E | 41.3 | Book Value | 2.78 ₹ | Dividend Yield | 1.46 % | ROCE | 42.5 % |
| ROE | 35.9 % | Face Value | 1.00 ₹ | DMA 50 | 42.8 ₹ | DMA 200 | 43.5 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | 0.58 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 165 Cr. |
| RSI | 29.9 | MACD | -1.29 | Volume | 1,14,42,159 | Avg Vol 1Wk | 90,21,779 |
| Low price | 31.3 ₹ | High price | 53.6 ₹ | PEG Ratio | 4.19 | Debt to equity | 0.14 |
| 52w Index | 33.7 % | Qtr Profit Var | 6.76 % | EPS | 0.94 ₹ | Industry PE | 25.0 |
📉 Chart & Trend: MSUMI is trading at ₹38.8, below both 50 DMA (₹42.8) and 200 DMA (₹43.5), confirming a bearish trend. RSI at 29.9 indicates oversold conditions, while MACD at -1.29 reflects negative momentum. Bollinger Bands show price near the lower band, suggesting weakness but potential for a short-term bounce.
📊 Volume: Current volume (1.14 Cr) exceeds the 1-week average (90.2 L), highlighting strong selling pressure but also possible accumulation at lower levels.
📈 Momentum Signals: Short-term momentum remains weak. Oversold RSI hints at a rebound, but trendlines show immediate support at ₹36–₹37 and strong support at ₹31.3. Resistance lies at ₹42.8 (50 DMA) and ₹43.5 (200 DMA).
🎯 Entry Zone: ₹36–₹37 (risk-managed accumulation).
🚪 Exit Zone: ₹42.5–₹43.5 (resistance cluster, profit-taking zone).
🔎 Trend Status: Bearish with oversold signals. A rebound is possible, but sustained recovery requires price stability above ₹43.5.
Positive
- Strong ROCE (42.5%) and ROE (35.9%) show excellent capital efficiency.
- Low debt-to-equity (0.14) ensures financial stability.
- Dividend yield of 1.46% adds investor appeal.
Limitation
- High P/E (41.3) compared to industry average (25.0) indicates stretched valuations.
- PEG ratio of 4.19 suggests expensive growth prospects.
- Technical weakness with price below both 50 DMA and 200 DMA.
Company Negative News
- PAT declined from ₹165 Cr to ₹149 Cr, showing earnings pressure.
- FII holding reduced by -0.13%, reflecting reduced foreign confidence.
Company Positive News
- DII holding increased by 0.58%, showing domestic institutional support.
- EPS at ₹0.94 remains stable despite profit decline.
Industry
- Industry PE at 25.0 highlights sector valuations are lower than the company’s, suggesting relative overvaluation.
- Automotive component sector is cyclical, sensitive to demand recovery and export trends.
Conclusion
⚠️ MSUMI is in a bearish consolidation phase, trading below key moving averages with oversold RSI. Fundamentals show strong efficiency and low debt, but stretched valuations and declining profits limit upside. Short-term traders may consider entries near ₹36–₹37 with exits around ₹42–₹43, while long-term investors should wait for earnings improvement and valuation correction before fresh accumulation.
Would you like me to extend this into a sector scan with basket overlays and peer benchmarking? That way, you’ll see how MSUMI stacks up against other auto component stocks in terms of relative strength and margin-of-safety clarity.