VMM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | VMM | Market Cap | 56,901 Cr. | Current Price | 122 ₹ | High / Low | 158 ₹ |
| Stock P/E | 86.7 | Book Value | 15.0 ₹ | Dividend Yield | 0.00 % | ROCE | 13.2 % |
| ROE | 9.92 % | Face Value | 10.0 ₹ | DMA 50 | 120 ₹ | DMA 200 | 125 ₹ |
| Chg in FII Hold | 6.49 % | Chg in DII Hold | 7.27 % | PAT Qtr | 167 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 52.6 | MACD | 0.98 | Volume | 58,97,150 | Avg Vol 1Wk | 1,14,47,084 |
| Low price | 98.7 ₹ | High price | 158 ₹ | PEG Ratio | 2.24 | Debt to equity | 0.02 |
| 52w Index | 38.9 % | Qtr Profit Var | 55.2 % | EPS | 1.40 ₹ | Industry PE | 40.9 |
📊 Chart Patterns & Trend: VMM is trading close to its 50 DMA (120 ₹) and slightly below the 200 DMA (125 ₹), showing consolidation. Price action suggests sideways movement between 120–125 ₹ resistance and 98.7 ₹ support. Trend bias is neutral with mild bullish undertone.
📈 Moving Averages: Current price (122 ₹) is marginally above the 50 DMA but under the 200 DMA, signaling consolidation. Sustained trading above 125 ₹ could confirm bullish reversal.
⚖️ RSI: At 52.6, RSI is neutral, suggesting balanced momentum with potential for upside if buying volume increases.
📉 MACD: Slightly positive at 0.98, hinting at mild bullish momentum but not strong enough to confirm trend continuation.
📊 Bollinger Bands: Price is near the middle band, indicating sideways consolidation. No clear breakout signal yet.
📦 Volume Trends: Current volume (58,97,150) is significantly lower than 1-week average (1,14,47,084), showing reduced participation and weak conviction in price moves.
🎯 Entry Zone: 115–120 ₹ (near support).
🚪 Exit Zone: 130–135 ₹ (near resistance and 200 DMA).
📌 Momentum Signal: Short-term consolidation with weak bullish attempts. A breakout above 125–130 ₹ could trigger reversal, while failure to hold 115 ₹ may lead to further downside.
Positive
- ✅ ROCE (13.2%) and ROE (9.92%) show moderate efficiency.
- ✅ Debt-to-equity at 0.02 indicates very low leverage.
- ✅ Strong institutional interest with FII holdings up 6.49% and DII holdings up 7.27%.
Limitation
- ⚠️ High P/E (86.7) compared to industry PE (40.9) suggests steep overvaluation.
- ⚠️ EPS at 1.40 ₹ is relatively weak compared to valuation.
- ⚠️ Dividend yield at 0.00% limits income appeal.
Company Negative News
- 📉 PAT declined from 182 Cr. to 167 Cr. quarter-on-quarter.
- 📉 Stock corrected from 52-week high (158 ₹) to current levels near 122 ₹.
Company Positive News
- 📈 Quarterly profit variation at 55.2% highlights strong earnings momentum year-on-year.
- 📈 Institutional buying (FII + DII) shows confidence despite short-term weakness.
Industry
- 🏭 Industry PE at 40.9 indicates sector is moderately valued compared to VMM’s premium valuation.
- 🏭 PEG ratio at 2.24 suggests growth prospects are expensive relative to earnings.
Conclusion
🔎 VMM is in a consolidation phase with mild bullish bias. Entry near 115–120 ₹ offers limited downside risk, while resistance at 130–135 ₹ should be watched for exits. A breakout above 125–130 ₹ could trigger fresh upside momentum, but weak EPS and stretched valuations raise caution. Investors should monitor volume strength and institutional flows for confirmation of sustained rally.