EICHERMOT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | EICHERMOT | Market Cap | 2,09,871 Cr. | Current Price | 7,652 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 41.3 | Book Value | 795 ₹ | Dividend Yield | 0.92 % | ROCE | 32.9 % |
| ROE | 25.2 % | Face Value | 1.00 ₹ | DMA 50 | 7,233 ₹ | DMA 200 | 6,937 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.09 % | PAT Qtr | 1,236 Cr. | PAT Prev Qtr | 1,333 Cr. |
| RSI | 64.4 | MACD | 117 | Volume | 7,00,044 | Avg Vol 1Wk | 5,82,176 |
| Low price | 5,353 ₹ | High price | 8,233 ₹ | PEG Ratio | 1.67 | Debt to equity | 0.01 |
| 52w Index | 79.8 % | Qtr Profit Var | 9.88 % | EPS | 184 ₹ | Industry PE | 37.8 |
📊 EICHERMOT displays strong fundamentals and favorable technicals for swing trading. With ROCE at 32.9% and ROE at 25.2%, the company shows excellent efficiency and profitability. EPS of 184 ₹ is robust, and debt-to-equity is nearly negligible (0.01). The P/E ratio (41.3) is slightly above industry average (37.8), but justified by strong earnings growth. RSI at 64.4 indicates moderate strength, while MACD at 117 signals bullish momentum. The stock trades above both 50 DMA (7,233 ₹) and 200 DMA (6,937 ₹), confirming an uptrend. Volume is higher than average, showing active participation.
💡 Optimal Entry Price: Around 7,200–7,300 ₹ (near 50 DMA support).
📈 Exit Strategy: If already holding, consider exiting near 8,000–8,200 ₹ (recent high resistance) or trail stop-loss to lock gains if momentum continues.
Positive
- 📌 [High ROCE](ca://s?q=EICHERMOT_ROCE): ROCE of 32.9% reflects strong capital efficiency.
- 📌 [Strong ROE](ca://s?q=EICHERMOT_ROE): ROE of 25.2% indicates excellent shareholder returns.
- 📌 [Low Debt](ca://s?q=EICHERMOT_debt_equity): Debt-to-equity ratio of 0.01 shows financial stability.
- 📌 [Bullish Technicals](ca://s?q=EICHERMOT_MACD_RSI): MACD positive and RSI in healthy range support upward momentum.
Limitation
- ⚠️ [High Valuation](ca://s?q=EICHERMOT_high_PE): P/E ratio of 41.3 is slightly above industry average (37.8).
- ⚠️ [Profit Dip](ca://s?q=EICHERMOT_quarterly_profit): PAT declined from 1,333 Cr to 1,236 Cr.
- ⚠️ [FII Reduction](ca://s?q=EICHERMOT_FII_holdings): FII holdings decreased by 0.24%, showing slight foreign investor caution.
Company Negative News
- ❌ [Quarterly Profit Decline](ca://s?q=EICHERMOT_profit_decline): PAT fell by 97 Cr compared to previous quarter.
- ❌ [FII Exit](ca://s?q=EICHERMOT_FII_exit): Foreign investors reduced holdings marginally.
Company Positive News
- ✅ [Strong EPS](ca://s?q=EICHERMOT_EPS): EPS of 184 ₹ highlights profitability.
- ✅ [Dividend Yield](ca://s?q=EICHERMOT_dividend_yield): Yield of 0.92% provides shareholder returns.
- ✅ [Market Cap Strength](ca://s?q=EICHERMOT_market_cap): Market cap of 2,09,871 Cr shows industry leadership.
Industry
- 🏭 [Industry PE](ca://s?q=Automobile_industry_PE): Industry average P/E is 37.8, close to EICHERMOT’s valuation.
- 🏭 [Sector Growth](ca://s?q=Automobile_sector_growth): Automobile sector benefits from rising demand for premium motorcycles and exports.
Conclusion
📈 EICHERMOT is a strong candidate for swing trading. Fundamentals are excellent, debt is negligible, and technicals support bullish momentum. Entry near 7,200–7,300 ₹ offers a favorable setup, with exit targets around 8,000–8,200 ₹. Despite minor profit decline and slight FII reduction, overall strength and industry leadership make it attractive for short-term gains.