EICHERMOT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | EICHERMOT | Market Cap | 1,86,311 Cr. | Current Price | 6,793 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 37.5 | Book Value | 701 ₹ | Dividend Yield | 1.03 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,377 ₹ | DMA 200 | 6,763 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,333 Cr. | PAT Prev Qtr | 1,208 Cr. |
| RSI | 36.5 | MACD | -199 | Volume | 6,53,237 | Avg Vol 1Wk | 7,11,669 |
| Low price | 5,000 ₹ | High price | 8,233 ₹ | PEG Ratio | 0.96 | Debt to equity | 0.01 |
| 52w Index | 55.5 % | Qtr Profit Var | 26.2 % | EPS | 180 ₹ | Industry PE | 27.7 |
📊 EICHERMOT demonstrates strong fundamentals with excellent ROCE (31.7%) and ROE (25.1%). The EPS of 180 ₹ and consistent profit growth (PAT 1,333 Cr. vs 1,208 Cr.) highlight robust earnings. However, technical indicators show weakness (RSI 36.5, MACD -199), suggesting bearish momentum in the short term. Despite this, the long-term fundamentals make it a relatively good candidate for swing trading if entered near support levels.
💡 Optimal Entry Price: Around 6,600–6,700 ₹ (close to DMA 200 support).
📉 Exit Strategy (if already holding): Consider booking profits near 7,350–7,400 ₹ (DMA 50 resistance) unless momentum strengthens.
Positive
- Strong ROCE (31.7%) and ROE (25.1%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.01), showing financial strength.
- EPS of 180 ₹ supports valuation stability.
- Quarterly PAT growth (26.2%) reflects operational efficiency.
- Dividend yield of 1.03% provides income support.
Limitation
- Current price (6,793 ₹) is below DMA 50 (7,377 ₹), showing short-term weakness.
- RSI at 36.5 indicates oversold conditions but also weak momentum.
- MACD (-199) signals bearish trend continuation.
Company Negative News
- Stock trading below 50 DMA, reflecting short-term pressure.
- Bearish technical indicators (RSI and MACD) suggest caution.
Company Positive News
- Quarterly PAT increased significantly (1,333 Cr. vs 1,208 Cr.).
- FII (+0.03%) and DII (+0.02%) holdings show stable institutional interest.
- Strong fundamentals with PEG ratio of 0.96, indicating reasonable growth valuation.
Industry
- Industry P/E is 27.7, while company P/E is 37.5, showing slight premium valuation.
- Automobile sector remains resilient, with demand recovery supporting growth.
Conclusion
✅ EICHERMOT is a fairly strong swing trade candidate backed by excellent fundamentals and growth. While technical indicators show short-term weakness, entry near 6,600–6,700 ₹ offers favorable risk-reward. Exit targets should be set around 7,350–7,400 ₹, with strict stop-loss near 6,500 ₹ to manage downside risk.