VMM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart & Trend Analysis:

VMM is trading at ₹138, exactly at its 50 DMA (₹138) and slightly above its 200 DMA (₹133), showing neutral momentum. RSI at 44.3 suggests mildly oversold conditions. MACD at -1.53 indicates bearish crossover, pointing to short-term weakness. Bollinger Bands place the price near the lower band, signaling consolidation with downside bias. Current volume (56,29,996) is below the 1-week average (69,96,152), reflecting reduced participation and lack of strong buying interest.

🔎 Momentum Signals:

- Short-term momentum: Bearish-to-neutral.

- Support levels: ₹135 (near-term), ₹125, ₹96 (major support).

- Resistance levels: ₹145, ₹150, ₹158 (recent high).

- Optimal entry zone: ₹130–138.

- Optimal exit zone: ₹145–155.

- Current phase: Consolidation with bearish undertone.

Positive

• Low debt-to-equity ratio (0.02) ensures financial stability.
• FII holding increased by 2.55%, showing strong foreign investor confidence.
• 52-week index at 68.4% reflects decent performance compared to broader market.

Limitation

• Extremely high P/E ratio (119) compared to industry average (44.6) suggests severe overvaluation.
• PEG ratio of 3.66 indicates growth does not justify valuation.
• ROCE (10.1%) and ROE (7.62%) are modest, showing limited efficiency.
• Quarterly PAT declined from ₹177 Cr. to ₹131 Cr., showing earnings weakness.

Company Negative News

• DII holding decreased by -1.89%, reflecting reduced domestic institutional confidence.
• EPS remains low at ₹1.18, highlighting weak profitability.

Company Positive News

• FII support increased significantly (+2.55%), balancing out DII weakness.
• Quarterly profit variation (+25%) shows some recovery momentum despite decline in absolute PAT.

Industry

• Industry P/E at 44.6 is far lower than VMM’s, suggesting peers trade at more attractive valuations.
• Sector outlook remains stable with moderate demand growth.

Conclusion

⚠️ VMM is consolidating with a bearish undertone, trading at its 50 DMA with weak momentum. Entry near ₹130–138 offers limited risk-reward, while exits around ₹145–155 are optimal. Strong foreign investor support and low debt provide positives, but high valuation, weak profitability, and declining domestic institutional interest weigh heavily. Short-term trend remains sideways-to-down with possible consolidation near support.