HONASA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | HONASA | Market Cap | 8,989 Cr. | Current Price | 277 ₹ | High / Low | 334 ₹ |
| Stock P/E | 58.2 | Book Value | 38.8 ₹ | Dividend Yield | 0.00 % | ROCE | 7.44 % |
| ROE | 5.51 % | Face Value | 10.0 ₹ | DMA 50 | 286 ₹ | DMA 200 | 287 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | -0.51 % | PAT Qtr | 51.7 Cr. | PAT Prev Qtr | 38.4 Cr. |
| RSI | 43.8 | MACD | -4.91 | Volume | 4,19,469 | Avg Vol 1Wk | 10,52,488 |
| Low price | 190 ₹ | High price | 334 ₹ | PEG Ratio | 1.22 | Debt to equity | 0.09 |
| 52w Index | 60.3 % | Qtr Profit Var | 109 % | EPS | 4.64 ₹ | Industry PE | 41.8 |
📊 HONASA shows improving earnings but weak technicals and stretched valuations. The RSI at 43.8 indicates neutral momentum, while MACD (-4.91) reflects mild bearishness. The current price (₹277) is below both the 50 DMA (₹286) and 200 DMA (₹287), signaling short-term weakness. Fundamentals are modest with ROCE (7.44%) and ROE (5.51%), though quarterly PAT growth (+109%) is encouraging. Valuation is expensive with a P/E of 58.2 compared to industry P/E of 41.8, and PEG ratio (1.22) suggests moderate growth potential.
💡 Optimal Entry Price: ₹270–₹280, near current levels and close to support.
📈 Exit Strategy (if already holding): Consider exiting around ₹285–₹295 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT growth from ₹38.4 Cr. to ₹51.7 Cr. (+109%).
- EPS of ₹4.64 shows improving profitability.
- PEG ratio of 1.22 suggests moderate growth potential.
- 52-week index gain of 60.3% highlights long-term resilience.
⚠️ Limitation
- Low ROCE (7.44%) and ROE (5.51%) indicate weak efficiency.
- Dividend yield of 0.00% offers no income return.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
- Valuation stretched with P/E of 58.2 vs industry P/E of 41.8.
📉 Company Negative News
- FII holdings declined (-0.88%), showing reduced foreign investor confidence.
- DII holdings declined (-0.51%), showing reduced domestic institutional support.
📈 Company Positive News
- Quarterly profit growth (+109%) reflects strong earnings momentum.
- 52-week performance (+60.3%) shows resilience despite volatility.
🏭 Industry
- Consumer goods sector remains competitive with steady demand.
- Industry P/E at 41.8 makes HONASA relatively expensive (P/E 58.2).
🔎 Conclusion
HONASA is showing strong earnings growth but faces weak technicals and stretched valuations. It may be suitable for swing trading if entered near ₹270–₹280, with a target around ₹285–₹295. Traders should monitor RSI recovery and volume trends before committing heavily.