EICHERMOT - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.0

📊 EICHERMOT shows strong potential for swing trading. Current price (₹7,217) is above both 50 DMA (₹6,977) and 200 DMA (₹6,201), reflecting bullish momentum. RSI at 51.3 is neutral-to-positive, while MACD (43.8) confirms upward momentum. Fundamentals are robust with ROCE (31.7%) and ROE (25.1%), supported by a debt-free balance sheet. Valuation is slightly stretched with a P/E of 42.2 compared to industry average of 29.6, but earnings growth and strong EPS (₹171) provide support. Optimal entry would be near ₹7,050–₹7,100 on dips. If already holding, exit near ₹7,300–₹7,350 resistance unless momentum strengthens further.

✅ Positive

• 📈 Strong ROCE (31.7%) and ROE (25.1%) show efficient capital use
• 📉 Debt-to-equity at 0.01 ensures financial stability
• 📊 EPS at ₹171 supports valuation strength
• 📈 Quarterly PAT remains strong at ₹1,208 Cr. despite slight decline
• 📊 FII holding increased (+1.16%), showing foreign investor confidence

⚠️ Limitation

• 📉 Current price close to 52-week high (₹7,328), limiting upside
• 📊 DII holding decreased (-1.05%)
• 📉 Valuation stretched with P/E (42.2 vs industry 29.6)
• ⚠️ Trading volume lower than weekly average

🚨 Company Negative News

• 📉 Quarterly PAT declined from ₹1,306 Cr. to ₹1,208 Cr.
• ⚠️ Near-term valuation premium compared to peers

🌟 Company Positive News

• 📈 Strong fundamentals with high ROCE and ROE
• 📊 EPS and profitability remain solid
• 📈 Foreign institutional investors increasing stake

🏭 Industry

• 📊 Industry P/E at 29.6, lower than company’s 42.2
• 📈 Automobile sector has long-term growth potential with rising demand for premium motorcycles

📌 Conclusion

⚖️ EICHERMOT is a good swing trade candidate with strong fundamentals and bullish technicals, though valuations are slightly stretched. Entry is favorable near ₹7,050–₹7,100 on dips. For existing holders, exit near ₹7,300–₹7,350 resistance is advisable unless RSI and MACD show stronger recovery.

Would you like me to also outline EICHERMOT’s medium-term support and resistance zones so you can track swing opportunities beyond the immediate levels?