MSUMI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.3

📉 Chart Patterns & Trend: MSUMI is trading at ₹47.7, above both its 50 DMA (₹46.0) and 200 DMA (₹43.4). This indicates a short-term consolidation phase with mild bullish undertone, though the stock is facing resistance near its 52-week high of ₹50.5.

📊 Moving Averages: Price above both short- and long-term averages confirms underlying strength. Key support lies near ₹46 (50 DMA) and ₹43.5 (200 DMA), while resistance is around ₹50–₹51.

📉 RSI: At 41.1, RSI is neutral-to-weak, suggesting limited upside momentum and possible sideways consolidation.

📉 MACD: Slightly negative MACD (-0.46) signals weakening momentum, hinting at caution near resistance levels.

📉 Bollinger Bands: Price is near the mid-band, indicating consolidation. A breakout above ₹49–₹50 could trigger bullish momentum toward fresh highs.

📊 Volume Trends: Current volume (24.8L) is below the weekly average (38.9L), showing reduced participation. Stronger volume is needed to confirm breakout strength.

🎯 Entry Zone: ₹45.5–₹47.0 (near support)

🚪 Exit Zone: ₹49.5–₹50.5 (near resistance/high)

Positive

• Stock trading above both 50 DMA and 200 DMA confirms underlying bullish sentiment.
• Strong ROCE (42.5%) and ROE (35.9%) reflect excellent efficiency and profitability.
• DII holding increased (+0.35%), showing domestic institutional support.
• Quarterly PAT improved from ₹143 Cr. to ₹165 Cr. (+8.72%).

Limitation

• High P/E (51.5) compared to industry PE (30.0) suggests overvaluation.
• PEG ratio of 5.23 highlights expensive valuation relative to growth.
• FII holding decreased (-0.10%), showing reduced foreign investor confidence.
• EPS of ₹0.92 is modest relative to valuation multiples.

Company Negative News

• Weak momentum indicators (RSI neutral, MACD negative) suggest limited upside in near term.
• Reduced foreign institutional participation adds pressure on sentiment.

Company Positive News

• Strong quarterly profit growth supports earnings momentum.
• Domestic institutional investors increased stake, showing local confidence.
• Debt-to-equity ratio of 0.14 indicates low leverage risk.

Industry

• Industry PE at 30.0 is lower than MSUMI’s PE (51.5), suggesting premium valuation.
• Auto component sector benefits from rising demand in passenger and commercial vehicles.

Conclusion

📌 MSUMI is in a consolidation phase, trading above key moving averages but with weak RSI and negative MACD. Entry near ₹45.5–₹47.0 offers favorable risk-reward, while resistance at ₹49.5–₹50.5 provides exit targets. Strong fundamentals and profitability support long-term growth, but high valuation and weak momentum warrant cautious optimism in the near term.