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MSUMI - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 4.2

Stock Code MSUMI Market Cap 26,885 Cr. Current Price 40.5 ₹ High / Low 53.6 ₹
Stock P/E 43.0 Book Value 3.26 ₹ Dividend Yield 1.40 % ROCE 38.9 %
ROE 32.4 % Face Value 1.00 ₹ DMA 50 40.3 ₹ DMA 200 42.4 ₹
Chg in FII Hold -0.40 % Chg in DII Hold 0.24 % PAT Qtr 167 Cr. PAT Prev Qtr 149 Cr.
RSI 54.6 MACD 0.21 Volume 1,63,27,886 Avg Vol 1Wk 2,36,63,740
Low price 32.0 ₹ High price 53.6 ₹ PEG Ratio 4.93 Debt to equity 0.11
52w Index 39.5 % Qtr Profit Var 1.44 % EPS 0.94 ₹ Industry PE 27.3

📈 Chart & Trend: MSUMI is trading slightly above its 50 DMA (40.3 ₹) but below its 200 DMA (42.4 ₹), indicating consolidation with mild bullish bias. RSI at 54.6 reflects neutral momentum, while MACD at 0.21 shows a weak positive crossover. Bollinger Bands remain moderately tight, suggesting limited volatility.

🔎 Momentum Signals: Short-term momentum is mildly positive. Strong support lies at 38 ₹, while resistance is near 44–46 ₹. Entry zone: 38–40 ₹. Exit zone: 44–46 ₹.

📊 Volume Trends: Current volume (1.63 Cr.) is below the 1-week average (2.36 Cr.), indicating reduced participation and consolidation pressure.

Positive

  • High ROCE (38.9%) and ROE (32.4%) demonstrate strong operational efficiency.
  • Low debt-to-equity ratio (0.11) ensures financial resilience.
  • Quarterly PAT growth (167 Cr. vs 149 Cr.) signals earnings improvement.

Limitation

  • Elevated P/E (43.0) compared to industry average (27.3) suggests overvaluation.
  • PEG ratio of 4.93 indicates limited growth potential relative to valuation.
  • Below-average trading volume weakens short-term momentum strength.

Company Negative News

  • FII holdings declined (-0.40%), showing reduced foreign investor confidence.

Company Positive News

  • DII holdings increased (+0.24%), reflecting domestic institutional support.
  • Quarterly profit variation (+1.44%) highlights consistent earnings growth.

Industry

  • Industry PE at 27.3 indicates sector valuation is moderate compared to MSUMI’s premium pricing.
  • Auto component sector continues steady demand recovery, supporting long-term outlook.

Conclusion

MSUMI is consolidating near support levels with mild bullish signals. Strong fundamentals and low debt support stability, but overvaluation and weak volume trends limit near-term upside. Best suited for cautious accumulation near 38–40 ₹ with profit booking around 44–46 ₹.

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