EICHERMOT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | EICHERMOT | Market Cap | 1,98,976 Cr. | Current Price | 7,252 ₹ | High / Low | 7,614 ₹ |
| Stock P/E | 42.4 | Book Value | 701 ₹ | Dividend Yield | 0.96 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,159 ₹ | DMA 200 | 6,490 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,208 Cr. | PAT Prev Qtr | 1,306 Cr. |
| RSI | 53.8 | MACD | -42.7 | Volume | 2,63,488 | Avg Vol 1Wk | 4,78,915 |
| Low price | 4,644 ₹ | High price | 7,614 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.01 |
| 52w Index | 87.8 % | Qtr Profit Var | 19.6 % | EPS | 171 ₹ | Industry PE | 30.0 |
📊 EICHERMOT is a strong candidate for swing trading given its robust fundamentals and near-resistance price action. The company boasts excellent ROCE (31.7%) and ROE (25.1%), very low debt-to-equity (0.01), and consistent profitability (EPS 171 ₹). Technically, the stock is trading above both 50 DMA (7,159 ₹) and 200 DMA (6,490 ₹), showing long-term strength. However, short-term indicators like MACD (-42.7) and slightly weak volume suggest caution. RSI at 53.8 indicates neutral momentum.
💡 Optimal Entry Price: Around 7,100–7,200 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 7,500–7,600 ₹ (close to 52-week high and resistance zone).
✅ Positive
- Strong ROCE (31.7%) and ROE (25.1%) reflect efficient capital use.
- Debt-to-equity ratio of 0.01 shows virtually debt-free status.
- EPS of 171 ₹ highlights consistent profitability.
- PEG ratio of 1.08 suggests fair valuation relative to growth.
- Stock trading above both 50 DMA and 200 DMA, indicating long-term bullishness.
⚠️ Limitation
- High P/E ratio (42.4) compared to industry PE (30.0).
- MACD negative (-42.7), signaling short-term weakness.
- Volume lower than weekly average, showing reduced trading activity.
📉 Company Negative News
- Quarterly PAT declined from 1,306 Cr. to 1,208 Cr.
- Short-term momentum indicators (MACD, volume) are weak.
📈 Company Positive News
- Quarterly profit variation still positive at +19.6% YoY.
- FII and DII holdings both increased slightly, showing institutional confidence.
- Dividend yield of 0.96% provides shareholder returns.
🏭 Industry
- Industry PE at 30.0, lower than company’s PE, suggesting premium valuation.
- Automobile sector demand remains strong, supporting growth outlook.
🔎 Conclusion
EICHERMOT is fundamentally strong and technically positioned near resistance. It offers a good swing trade opportunity with entry around 7,100–7,200 ₹ and exit near 7,500–7,600 ₹. Traders should monitor momentum indicators closely, as short-term weakness could limit upside.