HEROMOTOCO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | HEROMOTOCO | Market Cap | 1,00,493 Cr. | Current Price | 5,022 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 18.8 | Book Value | 1,078 ₹ | Dividend Yield | 3.68 % | ROCE | 34.1 % |
| ROE | 25.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,059 ₹ | DMA 200 | 5,204 ₹ |
| Chg in FII Hold | 1.72 % | Chg in DII Hold | -1.59 % | PAT Qtr | 1,401 Cr. | PAT Prev Qtr | 1,439 Cr. |
| RSI | 53.3 | MACD | -19.0 | Volume | 3,63,072 | Avg Vol 1Wk | 4,47,965 |
| Low price | 4,190 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.79 | Debt to equity | 0.01 |
| 52w Index | 37.8 % | Qtr Profit Var | 29.6 % | EPS | 263 ₹ | Industry PE | 37.5 |
HEROMOTOCO shows balanced potential for swing trading. The RSI at 53.3 indicates neutral momentum, while MACD (-19.0) reflects short-term weakness. The stock is trading slightly below its 50 DMA (5,059 ₹) and 200 DMA (5,204 ₹), signaling caution. Strong fundamentals like ROCE (34.1%) and ROE (25.9%) support long-term stability, while attractive dividend yield (3.68%) adds investor appeal. Valuation remains favorable with a P/E of 18.8 compared to industry PE of 37.5.
💡 Optimal Entry Price: Around 4,950–5,000 ₹, closer to support levels near 4,190 ₹.
📈 Exit Strategy (if already holding): Consider booking profits near 5,200–5,250 ₹ (DMA resistance zone), unless momentum strengthens.
🌟 Positive
- Strong ROCE (34.1%) and ROE (25.9%) highlight efficient capital use.
- Attractive Dividend Yield of 3.68% provides steady returns.
- Low Debt-to-Equity ratio (0.01) ensures financial stability.
- PEG ratio of 0.79 suggests fair valuation relative to growth.
- Increase in FII holdings (+1.72%) shows foreign investor confidence.
⚠️ Limitation
- Price below both 50 DMA and 200 DMA reflects weak technical trend.
- Negative MACD (-19.0) shows bearish momentum.
- Slight decline in quarterly PAT (1,439 Cr. to 1,401 Cr.).
- Decline in DII holdings (-1.59%) shows reduced domestic investor confidence.
📰 Company Negative News
- Weak technicals with MACD negative and price below DMA levels.
- Slight decline in quarterly profits.
📈 Company Positive News
- Strong fundamentals with high ROE and ROCE.
- Consistent dividend payout with attractive yield.
- Increase in foreign investor confidence with FII holding up 1.72%.
🏭 Industry
- Industry PE at 37.5 vs stock PE at 18.8 — HEROMOTOCO is undervalued compared to peers.
- Two-wheeler industry remains resilient with strong demand in rural and urban markets.
🔎 Conclusion
HEROMOTOCO is fundamentally strong but technically weak in the short term. For swing trading, it may be a candidate if it stabilizes near 4,950–5,000 ₹ and shows reversal signals. Exit should be considered near 5,200–5,250 ₹ unless momentum improves. Long-term investors may continue holding due to strong fundamentals, attractive dividend yield, and undervaluation compared to industry peers.
Would you like me to extend this by benchmarking HEROMOTOCO against peers like Bajaj Auto, TVS Motor, or Eicher Motors to highlight relative opportunities?