HEROMOTOCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | HEROMOTOCO | Market Cap | 1,17,036 Cr. | Current Price | 5,852 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 24.4 | Book Value | 1,051 ₹ | Dividend Yield | 2.82 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,700 ₹ | DMA 200 | 5,247 ₹ |
| Chg in FII Hold | 0.67 % | Chg in DII Hold | -0.04 % | PAT Qtr | 1,393 Cr. | PAT Prev Qtr | 1,126 Cr. |
| RSI | 58.8 | MACD | -35.6 | Volume | 5,04,827 | Avg Vol 1Wk | 4,78,194 |
| Low price | 3,323 ₹ | High price | 6,390 ₹ | PEG Ratio | 1.05 | Debt to equity | 0.01 |
| 52w Index | 82.5 % | Qtr Profit Var | 15.7 % | EPS | 240 ₹ | Industry PE | 30.0 |
📊 Hero MotoCorp (HEROMOTOCO) demonstrates strong fundamentals with high ROCE and ROE, low debt, and consistent profit growth. The RSI at 58.8 indicates neutral-to-slightly bullish momentum, though MACD (-35.6) shows short-term weakness. The optimal entry price would be around ₹5,750–₹5,800, near the 50 DMA support. If already holding, consider exiting around ₹6,250–₹6,300, close to the resistance zone near the recent high.
✅ Positive
- Strong ROCE (31.5%) and ROE (23.8%) reflect efficient capital usage and profitability.
- Low debt-to-equity ratio (0.01) indicates excellent financial stability.
- Dividend yield of 2.82% provides attractive income for investors.
- Quarterly PAT growth from ₹1,126 Cr. to ₹1,393 Cr. (+15.7%) shows strong earnings momentum.
- EPS of ₹240 supports robust profitability.
- FII holdings increased (+0.67%), reflecting foreign investor confidence.
⚠️ Limitation
- MACD (-35.6) signals weak short-term momentum.
- Stock P/E (24.4) is slightly below industry PE (30.0), but valuation is not deeply discounted.
- Trading volume is moderate, not showing strong breakout activity.
📉 Company Negative News
- DII holdings decreased slightly (-0.04%), showing reduced domestic institutional support.
- MACD weakness indicates potential short-term consolidation.
📈 Company Positive News
- Strong quarterly profit growth supports earnings visibility.
- Dividend yield and EPS highlight shareholder value creation.
- Stock trading above DMA 50 and DMA 200 indicates long-term strength.
🏭 Industry
- Automobile sector remains resilient with demand recovery in two-wheelers.
- Industry PE at 30.0 suggests Hero MotoCorp trades at a slight discount.
- Sector outlook remains positive with rural demand and EV adoption trends.
🔎 Conclusion
Hero MotoCorp is a fundamentally strong company with low debt, high returns, and consistent profit growth. While short-term momentum indicators show weakness, the overall setup favors swing trading opportunities. Entry near ₹5,750–₹5,800 is favorable, with an exit target around ₹6,250–₹6,300. Strong fundamentals and sector tailwinds make it a good candidate for swing trades, though traders should monitor momentum closely.