EICHERMOT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | EICHERMOT | Market Cap | 2,01,005 Cr. | Current Price | 7,329 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 40.4 | Book Value | 701 ₹ | Dividend Yield | 0.96 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,172 ₹ | DMA 200 | 6,826 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.09 % | PAT Qtr | 1,333 Cr. | PAT Prev Qtr | 1,208 Cr. |
| RSI | 56.0 | MACD | 23.2 | Volume | 7,17,751 | Avg Vol 1Wk | 5,99,784 |
| Low price | 5,201 ₹ | High price | 8,233 ₹ | PEG Ratio | 1.03 | Debt to equity | 0.01 |
| 52w Index | 70.2 % | Qtr Profit Var | 26.2 % | EPS | 180 ₹ | Industry PE | 31.7 |
Analyzing EICHERMOT, the stock demonstrates strong fundamentals with high ROCE (31.7%), ROE (25.1%), low debt-to-equity (0.01), and consistent profit growth. Technical indicators (RSI 56, MACD positive) suggest bullish momentum. The current price (₹7,329) is above both 50 DMA (₹7,172) and 200 DMA (₹6,826), showing strength. Optimal entry would be around ₹7,150–7,250 near the 50 DMA. If already holding, consider exiting near resistance at ₹7,800–8,000 or if momentum weakens below ₹7,100.
✅ Positive
- Strong ROCE (31.7%) and ROE (25.1%) reflect efficient capital use.
- Low debt-to-equity ratio (0.01) indicates financial stability.
- Quarterly PAT growth (₹1,333 Cr. vs ₹1,208 Cr.) shows earnings strength.
- EPS of ₹180 supports valuation strength.
⚠️ Limitation
- P/E ratio of 40.4 is higher than industry average (31.7), suggesting premium valuation.
- FII holdings decreased (-0.24%), showing slight foreign investor caution.
- Dividend yield at 0.96% is modest.
📉 Company Negative News
- Minor decline in FII holdings (-0.24%).
- Premium valuation compared to peers may limit upside.
📈 Company Positive News
- Quarterly PAT rose to ₹1,333 Cr. from ₹1,208 Cr.
- DII holdings increased (+0.09%), showing domestic support.
- Strong EPS and profitability metrics reinforce confidence.
🏭 Industry
- Industry PE is 31.7, lower than company PE, indicating EICHERMOT trades at a premium.
- Automobile sector remains strong, supported by demand for premium motorcycles and exports.
🔎 Conclusion
EICHERMOT is a solid candidate for swing trading with strong fundamentals and bullish technicals. Entry around ₹7,150–7,250 is favorable, with exit targets near ₹7,800–8,000. Overall, the stock offers a good risk-reward profile for short-term traders, though premium valuation requires disciplined stop-loss management.