HEROMOTOCO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | HEROMOTOCO | Market Cap | 1,01,347 Cr. | Current Price | 5,066 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 20.1 | Book Value | 1,051 ₹ | Dividend Yield | 3.26 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,295 ₹ | DMA 200 | 5,286 ₹ |
| Chg in FII Hold | 1.72 % | Chg in DII Hold | -1.59 % | PAT Qtr | 1,439 Cr. | PAT Prev Qtr | 1,393 Cr. |
| RSI | 44.1 | MACD | -68.9 | Volume | 6,54,995 | Avg Vol 1Wk | 5,92,997 |
| Low price | 3,710 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.87 | Debt to equity | 0.01 |
| 52w Index | 50.6 % | Qtr Profit Var | 19.6 % | EPS | 247 ₹ | Industry PE | 31.7 |
Analysis: HEROMOTOCO has strong fundamentals with ROCE (31.5%) and ROE (23.8%), supported by very low debt-to-equity (0.01). EPS (247 ₹) is robust, and dividend yield (3.26%) adds investor appeal. Quarterly PAT grew 19.6% to 1,439 Cr., showing consistent earnings. Technically, the stock is trading below both 50 DMA (5,295 ₹) and 200 DMA (5,286 ₹), with RSI (44.1) neutral and MACD (-68.9) bearish, indicating short-term weakness. Current price (5,066 ₹) is closer to its 52-week low (3,710 ₹), suggesting potential rebound opportunities. Valuation is fair with P/E (20.1) below industry PE (31.7) and PEG ratio (0.87) showing growth alignment.
Entry Price: Best entry zone is near 5,000–5,100 ₹, close to support levels.
Exit Strategy: If already holding, consider exiting around 5,300–5,400 ₹, near resistance levels, unless momentum improves.
✅ Positive
- Strong ROCE (31.5%) and ROE (23.8%).
- Quarterly PAT growth of 19.6%.
- Low debt-to-equity ratio (0.01).
- Attractive dividend yield (3.26%).
- P/E (20.1) below industry average.
⚠️ Limitation
- Stock trading below 50 DMA and 200 DMA.
- Bearish MACD (-68.9) indicates weak momentum.
- DII holdings declined (-1.59%).
📉 Company Negative News
- Weak technical indicators (MACD bearish, RSI neutral).
- DII holdings decreased (-1.59%).
📈 Company Positive News
- Quarterly PAT increased from 1,393 Cr. to 1,439 Cr.
- FII holdings increased (+1.72%).
- Strong EPS (247 ₹) supports valuation.
🏭 Industry
- Industry PE at 31.7 vs. HEROMOTOCO’s 20.1, showing undervaluation.
- Automobile sector remains cyclical but benefits from rising demand in two-wheelers.
🔎 Conclusion
HEROMOTOCO is fundamentally strong with undervaluation compared to industry peers. Despite weak technicals, it can be a good swing trade candidate if entered near 5,000–5,100 ₹, with a cautious exit around 5,300–5,400 ₹. Monitoring momentum indicators and institutional activity is essential before taking larger positions.