HEROMOTOCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | HEROMOTOCO | Market Cap | 1,03,522 Cr. | Current Price | 5,172 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 20.6 | Book Value | 1,051 ₹ | Dividend Yield | 3.19 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,569 ₹ | DMA 200 | 5,324 ₹ |
| Chg in FII Hold | 0.67 % | Chg in DII Hold | -0.04 % | PAT Qtr | 1,439 Cr. | PAT Prev Qtr | 1,393 Cr. |
| RSI | 38.4 | MACD | -90.0 | Volume | 4,05,469 | Avg Vol 1Wk | 4,46,408 |
| Low price | 3,323 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.89 | Debt to equity | 0.01 |
| 52w Index | 60.3 % | Qtr Profit Var | 19.6 % | EPS | 247 ₹ | Industry PE | 27.7 |
📊 HEROMOTOCO shows strong fundamentals with moderate technical weakness. The RSI at 38.4 suggests the stock is nearing oversold territory, while MACD (-90.0) reflects bearish momentum. The current price (₹5,172) is below both the 50 DMA (₹5,569) and 200 DMA (₹5,324), signaling short-term weakness. However, strong ROCE (31.5%), ROE (23.8%), and a healthy dividend yield (3.19%) make it attractive for swing trading. The PEG ratio (0.89) indicates undervaluation relative to growth, adding further support.
💡 Optimal Entry Price: ₹5,100–₹5,200, close to current levels and near support.
📈 Exit Strategy (if already holding): Consider exiting around ₹5,550–₹5,600 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (31.5%) and ROE (23.8%) reflect efficient capital use.
- Low debt-to-equity ratio (0.01) indicates financial stability.
- Quarterly PAT growth from ₹1,393 Cr. to ₹1,439 Cr. (+19.6%).
- Dividend yield of 3.19% adds investor appeal.
- FII holdings increased (+0.67%), showing foreign investor confidence.
⚠️ Limitation
- Stock P/E (20.6) is slightly lower than industry P/E (27.7), but technical weakness limits upside.
- Price trading below both 50 DMA and 200 DMA reflects bearish sentiment.
- MACD (-90.0) indicates strong bearish momentum.
📉 Company Negative News
- DII holdings declined slightly (-0.04%), showing reduced domestic institutional support.
- Weak technical indicators (MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Quarterly profit growth (+19.6%) shows earnings strength.
- Strong EPS (₹247) supports valuation.
- 52-week index gain of 60.3% highlights long-term resilience.
🏭 Industry
- Automobile sector remains cyclical but benefits from rising demand in India.
- Industry P/E at 27.7 makes HEROMOTOCO relatively undervalued (P/E 20.6).
🔎 Conclusion
HEROMOTOCO is fundamentally strong with attractive valuations and growth prospects. Despite short-term technical weakness, it is a good candidate for swing trading if entered near ₹5,100–₹5,200, with a target around ₹5,550–₹5,600. Traders should monitor RSI recovery and volume trends to confirm momentum before committing heavily.