VMM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📊 VMM is currently in a consolidation phase with neutral momentum and mixed technical indicators. Entry zone: ₹140–₹145; exit zone: ₹152–₹158. Watch for MACD crossover and RSI movement above 50 to confirm breakout potential.

📊 Technical Overview

• Price Action: Trading at ₹145, slightly below 50-DMA (₹147) but above 200-DMA (₹132), indicating short-term weakness but long-term support.
• RSI (44.4): Neutral zone, suggesting lack of strong momentum in either direction.
• MACD (-0.35): Bearish crossover, indicating short-term weakness.
• Bollinger Bands: Price near mid-band, confirming consolidation.
• Volume: Slightly below 1-week average, showing moderate participation.
• Support Zones: ₹140 (S1), ₹132 (S2)
• Resistance Zones: ₹152 (R1), ₹158 (R2)

✅ Positive

• Quarterly PAT increased from ₹107 Cr. to ₹177 Cr., a 35.2% jump.
• EPS of ₹1.13 supports valuation and earnings visibility.
• ROCE (10.1%) and ROE (7.62%) reflect stable operational efficiency.
• FII holdings increased (+2.55%), showing strong foreign investor confidence.
• Low debt-to-equity ratio (0.02) ensures financial flexibility.

⚠️ Limitation

• Stock P/E (130) is significantly higher than industry average (53.2), indicating overvaluation.
• PEG ratio of 4.02 suggests poor earnings growth relative to valuation.
• MACD and RSI show weak momentum, limiting short-term upside.
• Dividend yield of 0.00% offers no income cushion for investors.

📉 Company Negative News

• DII holdings declined (-1.89%), reflecting reduced domestic institutional confidence.
• Price has corrected ~8% from its recent high of ₹158.

📈 Company Positive News

• Strong quarterly profit growth and low leverage support long-term fundamentals.
• Price action above 200-DMA suggests long-term bullish bias.

🏢 Industry

• Media and entertainment sector benefits from digital expansion and rising content consumption.
• Industry P/E of 53.2 reflects high growth expectations across peers.

🧭 Conclusion

• VMM is consolidating with neutral technical indicators and improving fundamentals.
• Entry zone: ₹140–₹145; exit zone: ₹152–₹158 for short-term swing trades.
• Long-term investors may accumulate cautiously, supported by earnings growth and sector tailwinds.