MUTHOOTFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | MUTHOOTFIN | Market Cap | 1,38,019 Cr. | Current Price | 3,439 ₹ | High / Low | 4,150 ₹ |
| Stock P/E | 16.1 | Book Value | 859 ₹ | Dividend Yield | 0.76 % | ROCE | 13.4 % |
| ROE | 19.7 % | Face Value | 10.0 ₹ | DMA 50 | 3,528 ₹ | DMA 200 | 3,228 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | -0.24 % | PAT Qtr | 2,656 Cr. | PAT Prev Qtr | 2,345 Cr. |
| RSI | 49.3 | MACD | -79.5 | Volume | 10,44,116 | Avg Vol 1Wk | 12,74,435 |
| Low price | 1,964 ₹ | High price | 4,150 ₹ | PEG Ratio | 1.69 | Debt to equity | 3.69 |
| 52w Index | 67.5 % | Qtr Profit Var | 94.9 % | EPS | 213 ₹ | Industry PE | 17.2 |
📉 Chart & Trend: MUTHOOTFIN is trading at ₹3,439, below its 50 DMA (₹3,528) but above the 200 DMA (₹3,228), indicating short-term weakness but medium-term strength. RSI at 49.3 shows neutral momentum, while MACD at -79.5 reflects negative crossover. Bollinger Bands suggest price is consolidating around the mid-range, with limited volatility.
📊 Volume: Current volume (10.4 L) is slightly below the 1-week average (12.7 L), showing reduced participation and lack of strong buying interest.
📈 Momentum Signals: Short-term momentum is weak. Support levels are seen at ₹3,300–₹3,320 and strong support at ₹3,228 (200 DMA). Resistance lies at ₹3,528 (50 DMA) and ₹3,600.
🎯 Entry Zone: ₹3,300–₹3,320 (risk-managed entry zone).
🚪 Exit Zone: ₹3,520–₹3,600 (profit-taking zone near resistance).
🔎 Trend Status: Consolidation. The stock is consolidating between support and resistance levels, with medium-term bullish bias intact above 200 DMA.
Positive
- Strong ROE (19.7%) and ROCE (13.4%) show efficient capital use.
- EPS at ₹213 reflects robust earnings power.
- Quarterly PAT surged to ₹2,656 Cr from ₹2,345 Cr, showing strong growth momentum.
- FII holding increased by 0.17%, reflecting foreign investor confidence.
Limitation
- Debt-to-equity ratio of 3.69 indicates high leverage risk.
- Dividend yield of 0.76% is relatively low.
- Price trading below 50 DMA reflects short-term technical weakness.
Company Negative News
- DII holding reduced by -0.24%, showing weaker domestic institutional sentiment.
Company Positive News
- Quarterly profit growth of 94.9% highlights operational strength.
- EPS at ₹213 supports long-term valuation appeal.
Industry
- Industry PE at 17.2 is slightly higher than the company’s P/E of 16.1, suggesting fair valuation relative to peers.
- NBFC sector is cyclical, sensitive to interest rate movements and credit demand.
Conclusion
⚠️ MUTHOOTFIN is in a consolidation phase, trading below the 50 DMA but above the 200 DMA, with neutral RSI and negative MACD. Fundamentals show strong earnings growth and foreign investor confidence, but high leverage and short-term technical weakness limit upside. Short-term traders may consider entries near ₹3,300–₹3,320 with exits around ₹3,520–₹3,600, while long-term investors can hold given strong EPS and fair valuations relative to industry.
Would you like me to extend this into a basket overlay with peer benchmarking against other NBFCs like Bajaj Finance and Manappuram? That would highlight whether MUTHOOTFIN’s consolidation is sector-driven or company-specific.