HEROMOTOCO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📊 Hero MotoCorp shows strong fundamentals and high volume breakout potential. Ideal entry is ₹5,250–₹5,280. If already held, consider exiting near ₹5,650–₹5,700.

📈 Positive

• Strong financials: ROCE 31.5%, ROE 23.8%, Debt-to-equity 0.01
• PEG ratio 0.99 indicates fair valuation relative to growth
• MACD 27.7 signals bullish crossover potential
• Volume spike: 3x above weekly average suggests accumulation
• EPS of ₹231 and dividend yield of 3.11% add investor appeal

⚠️ Limitation

• RSI 37.8 shows oversold territory — wait for reversal confirmation
• Trading slightly below DMA 50 (₹5,344) — short-term weakness
• Qtr Profit Var only 0.27% — flat growth
• DII holding dropped by 1.45%

🚫 Company Negative News

• October sales dropped 6.4% YoY, with 8% decline in domestic dispatches

  Moneycontrol

  +1

• Stock fell 5% recently, touching a six-week low due to weak sales

  Mint

  +1

✅ Company Positive News

• Exports rose 43% YoY in October, showing strong international traction

  Moneycontrol

  +1

• Stock has outperformed Nifty Auto index with 41% gain over 6 months

  Business Standard

• Brokerages expect volume recovery in FY26 with 16% YoY growth estimates

  Moneycontrol

🏭 Industry

• Auto sector benefits from festive demand and rural recovery
• Hero trades at P/E 23 vs industry average of 39.3 — undervalued

🧾 Conclusion

• Hero MotoCorp is a strong swing candidate with bullish setup forming
• Best entry: ₹5,250–₹5,280 range near support and recent low
• If already held, exit near ₹5,650–₹5,700 — close to 52-week high
• Watch for RSI >45 and MACD continuation for confirmation

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