HONASA - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

🧴 HONASA shows early signs of recovery but faces valuation and momentum challenges. Entry near ₹270–₹275 is optimal. If already held, consider exiting near ₹310–₹325.

📈 Positive

• Quarterly PAT growth: ₹39.9 Cr. vs ₹24.6 Cr. — up 62%
• EPS ₹2.19 and Debt-to-equity 0.09 — low leverage
• DII holding increased by 0.25% — mild domestic interest
• Trading near DMA 50 (₹286) and DMA 200 (₹291) — potential support zone

⚠️ Limitation

• High P/E (128) and PEG ratio (2.69) — expensive valuation
• ROCE 7.44% and ROE 5.51% — weak capital efficiency
• MACD -3.08 and RSI 47.8 — neutral to bearish momentum
• Volume below weekly average — low short-term interest
• Dividend yield 0% — no income support

🚫 Company Negative News

• Stock corrected ~29% from 52-week high of ₹397
• FII holding dropped by 0.59% — foreign sentiment weakening

✅ Company Positive News

• Strong Q2 performance driven by digital-first strategy and product expansion
• Brand visibility improving across Tier 2 and Tier 3 cities
• Analysts expect margin improvement in FY26 with scale benefits

🏭 Industry

• Consumer goods sector benefits from festive demand and rising discretionary spending
• HONASA trades at a premium to industry PE (51.6) — reflects growth expectations

🧾 Conclusion

• HONASA is a speculative swing candidate with improving fundamentals but weak technicals
• Best entry: ₹270–₹275 near support and below DMA
• If already held, exit near ₹310–₹325 — resistance zone before 52-week high
• Watch for MACD crossover and RSI >50 for confirmation

I can also compare HONASA with other digital-first FMCG stocks to highlight stronger swing setups.