MUTHOOTFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | MUTHOOTFIN | Market Cap | 1,40,301 Cr. | Current Price | 3,493 ₹ | High / Low | 4,150 ₹ |
| Stock P/E | 19.3 | Book Value | 793 ₹ | Dividend Yield | 0.74 % | ROCE | 13.4 % |
| ROE | 19.7 % | Face Value | 10.0 ₹ | DMA 50 | 3,755 ₹ | DMA 200 | 3,133 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | -0.24 % | PAT Qtr | 2,345 Cr. | PAT Prev Qtr | 2,046 Cr. |
| RSI | 33.9 | MACD | 1.51 | Volume | 14,50,056 | Avg Vol 1Wk | 8,69,779 |
| Low price | 1,964 ₹ | High price | 4,150 ₹ | PEG Ratio | 2.02 | Debt to equity | 3.52 |
| 52w Index | 70.0 % | Qtr Profit Var | 87.4 % | EPS | 181 ₹ | Industry PE | 18.9 |
📊 Chart & Trend Analysis:
MUTHOOTFIN is trading at ₹3,493, below its 50 DMA (₹3,755) but above its 200 DMA (₹3,133), indicating short-term weakness but long-term support intact. RSI at 33.9 suggests the stock is oversold, hinting at a possible rebound. MACD at 1.51 shows mild positive crossover, but momentum remains weak. Bollinger Bands place price near the lower band, reflecting selling pressure. Current volume (14.5 lakh) is higher than the 1-week average (8.7 lakh), showing increased activity during the decline.
📈 Momentum Signals:
- RSI oversold, potential for short-term bounce.
- MACD mildly positive, but momentum is weak.
- Price below 50 DMA indicates short-term bearishness.
- Strong volume suggests active participation, possibly profit booking.
🎯 Optimal Entry & Exit Zones:
- Entry Zone: ₹3,450 – ₹3,500 (near oversold support).
- Exit Zone: ₹3,750 – ₹3,800 (resistance at 50 DMA).
- Stop Loss: ₹3,350 (below key support).
📌 Trend Status: The stock is consolidating with bearish bias, holding above long-term support but failing to sustain above short-term resistance levels.
Positive
- Strong EPS of ₹181 reflects solid earnings base.
- Quarterly PAT surged to ₹2,345 Cr. from ₹2,046 Cr., showing robust growth.
- ROE (19.7%) and ROCE (13.4%) highlight decent capital efficiency.
- FII holding increased (+0.17%), showing foreign investor confidence.
Limitation
- High debt-to-equity ratio (3.52) indicates significant leverage risk.
- Dividend yield of 0.74% is relatively low, limiting income appeal.
- Stock trading below 50 DMA reflects weak short-term technical strength.
Company Negative News
- DII holding decreased (-0.24%), showing reduced domestic institutional support.
- High leverage may limit flexibility in volatile interest rate environments.
Company Positive News
- Quarterly profit growth of 87.4% signals strong operational performance.
- EPS strength and consistent profitability support long-term investor confidence.
Industry
- Industry P/E at 18.9 is slightly lower than company’s P/E (19.3), suggesting fair valuation alignment.
- NBFC sector remains sensitive to interest rate cycles and credit demand trends.
Conclusion
⚖️ MUTHOOTFIN is consolidating with bearish bias, trading below its 50 DMA but supported by long-term averages. Fundamentals remain strong with robust profit growth and EPS, though high leverage poses risks. Short-term traders may consider entry near ₹3,450–₹3,500 with exits around ₹3,750–₹3,800, while long-term investors should monitor debt levels and sector conditions before fresh accumulation.