HEROMOTOCO - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.2

📊 Quick Take: Strong Fundamentals, Recovering Momentum

HEROMOTOCO shows notable potential for a short-to-medium swing trade. With a solid earnings uptick, strong return ratios, and positive technical signals beginning to build, this setup has the backbone for a compelling short-term opportunity.

📉 Technical Overview

Price vs DMA: Current price (₹4,325) is slightly above 50 DMA (₹4,268) and nearing the 200 DMA (₹4,292), indicating fresh upward momentum.

MACD (7.28): Strong bullish crossover – suggests upward price acceleration.

RSI (50.6): Neutral zone, but leaning bullish; not overbought or oversold.

Volume Trends: Slightly below average volume, but no red flag.

💰 Fundamental Strength

P/E (20.3) vs Industry PE (31.1): Valued attractively compared to peers.

PEG Ratio (0.85): Under 1 implies earnings growth supports valuation — bullish.

ROE / ROCE (23% / 30.3%): Top-tier efficiency metrics.

Debt to Equity (0.04): Financially lean and healthy.

📈 Ownership & Earnings Signal

Quarterly PAT Growth (24.2%): Strong uptick in profits – a positive catalyst.

FII & DII Change: Slight decline in holdings — worth watching, but not alarming.

Dividend Yield (3.81%): Adds a cushion for downside risk.

🎯 Trade Strategy

📥 Optimal Entry: If the price dips toward ₹4,270–₹4,290 range (around 200 DMA) and MACD remains positive, that’s a sweet spot.

📤 If Holding — When to Exit: Watch for resistance near ₹4,580–₹4,650. If momentum stalls at this level (MACD flattens or RSI peaks near 70), consider booking profits.

Swing trades are all about catching the wave early, and this one’s building up nicely. We’re not at full throttle yet, but conditions look strong enough to ride the short-term trend with tight risk management.

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