HEROMOTOCO - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 4.2
| Stock Code | HEROMOTOCO | Market Cap | 1,15,637 Cr. | Current Price | 5,780 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 24.1 | Book Value | 1,051 ₹ | Dividend Yield | 2.84 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,778 ₹ | DMA 200 | 5,080 ₹ |
| Chg in FII Hold | 1.71 % | Chg in DII Hold | -1.45 % | PAT Qtr | 1,393 Cr. | PAT Prev Qtr | 1,126 Cr. |
| RSI | 39.4 | MACD | 26.8 | Volume | 11,35,158 | Avg Vol 1Wk | 7,07,702 |
| Low price | 3,323 ₹ | High price | 6,390 ₹ | PEG Ratio | 1.04 | Debt to equity | 0.01 |
| 52w Index | 80.1 % | Qtr Profit Var | 15.7 % | EPS | 240 ₹ | Industry PE | 29.6 |
📊 Hero MotoCorp (HEROMOTOCO) shows strong potential for swing trading. The stock is trading right at its 50 DMA (₹5,778), comfortably above its 200 DMA (₹5,080), indicating medium-term strength. RSI at 39.4 suggests it is near oversold territory, while MACD is positive (26.8), showing bullish momentum. An optimal entry would be around ₹5,700–₹5,750. If already holding, consider exiting near ₹6,200–₹6,300, close to its recent high and resistance zone.
Positive
- ✅ ROCE (31.5%) and ROE (23.8%) reflect excellent capital efficiency.
- ✅ Debt-to-equity ratio of 0.01 indicates negligible leverage risk.
- ✅ Dividend yield of 2.84% provides steady income for investors.
- ✅ PAT growth from ₹1,126 Cr. to ₹1,393 Cr. shows strong earnings momentum.
- ✅ FII holdings increased by 1.71%, reflecting growing foreign investor confidence.
Limitation
- ⚠️ DII holdings dropped by 1.45%, showing reduced domestic institutional support.
- ⚠️ RSI at 39.4 indicates the stock is near oversold, which may cause volatility.
- ⚠️ Current price close to resistance (₹6,390 high), limiting short-term upside.
Company Negative News
- ❌ Domestic investor sentiment weakened as seen in reduced DII holdings.
- ❌ High volatility with wide 52-week range (₹3,323–₹6,390) may pose risk for traders.
Company Positive News
- 🌟 Quarterly profit growth of 15.7% highlights strong operational performance.
- 🌟 EPS of ₹240 supports robust profitability.
- 🌟 Strong brand leadership in two-wheeler segment ensures long-term demand stability.
Industry
- 🏭 Auto industry trades at PE of 29.6, higher than Hero MotoCorp’s PE of 24.1, suggesting relative undervaluation.
- 🏭 Sector growth driven by rising rural demand and EV adoption supports long-term prospects.
Conclusion
📌 Hero MotoCorp is a fundamentally strong and technically favorable candidate for swing trading. Entry near ₹5,700–₹5,750 is optimal, with exit around ₹6,200–₹6,300. Strong profitability, low debt, and foreign investor interest make it attractive, though traders should watch for volatility near resistance levels.
Would you like me to also prepare a comparative HTML report between Hero MotoCorp and Bajaj Auto to highlight relative swing trade opportunities?
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