EICHERMOT - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

📊 Analysis Summary

EICHERMOT is a fundamentally strong stock with excellent return ratios, low debt, and consistent profit growth. However, its technical indicators are currently weak, with a bearish MACD and low RSI suggesting short-term downside or consolidation. It’s a good candidate for swing trading if entered on a dip with momentum confirmation, but not ideal for immediate entry.

🔍 Technical Indicators

RSI (44.8): Bearish — momentum is weak, potential for further dip.

MACD (-27.3): Negative — confirms short-term weakness.

Price vs DMA

Current Price (₹5,470) is below 50 DMA (₹5,506) but above 200 DMA (₹5,209) — mixed trend.

Volume: Below weekly average — no strong buying interest.

📈 Fundamental Snapshot

P/E (31.7) vs Industry PE (31.1): Fairly valued — in line with peers.

PEG Ratio (0.77): Good — growth is reasonably priced.

ROE (24.1%) & ROCE (29.8%): Excellent — strong capital efficiency.

EPS (₹173) vs Price (₹5,470): Solid earnings base.

Qtr Profit Growth (+27.2%): Strong — earnings momentum.

FII Holding ↑ (+0.80%), DII Holding ↓ (-0.88%)**: Mixed institutional sentiment.

Debt to Equity (0.02): Very low — strong financial health.

Dividend Yield (1.28%): Decent — adds value for holding.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹5,250–₹5,300 range, near 200 DMA.

Wait for RSI to rise above 50 and MACD to turn positive before entering.

Avoid entering above ₹5,500 unless momentum improves.

🚪 Exit Strategy (If Already Holding)

Exit near ₹5,850–₹5,900, close to 52-week high resistance.

If price drops below ₹5,200, consider stop-loss at ₹5,100 to protect downside.

⚖️ Final Verdict

EICHERMOT is a fundamentally strong but technically weak swing trade setup at the moment. Best entered on a dip with confirmation of momentum reversal. If already holding, the long-term structure supports a move toward recent highs, but short-term caution is advised.

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