HONASA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | HONASA | Market Cap | 9,018 Cr. | Current Price | 277 ₹ | High / Low | 334 ₹ |
| Stock P/E | 72.5 | Book Value | 38.8 ₹ | Dividend Yield | 0.00 % | ROCE | 7.44 % |
| ROE | 5.51 % | Face Value | 10.0 ₹ | DMA 50 | 279 ₹ | DMA 200 | 286 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | -0.51 % | PAT Qtr | 38.4 Cr. | PAT Prev Qtr | 39.9 Cr. |
| RSI | 49.0 | MACD | -1.65 | Volume | 8,00,735 | Avg Vol 1Wk | 3,54,388 |
| Low price | 190 ₹ | High price | 334 ₹ | PEG Ratio | 1.52 | Debt to equity | 0.09 |
| 52w Index | 60.5 % | Qtr Profit Var | 357 % | EPS | 3.83 ₹ | Industry PE | 46.7 |
📊 Honasa (HONASA) shows strong profit variation and growth potential, but high valuation and weak fundamentals limit short-term upside. The RSI at 49.0 indicates neutral momentum, while MACD (-1.65) suggests mild bearishness. The optimal entry price would be around ₹270–₹275, near the support zone. If already holding, consider exiting around ₹315–₹325, close to the resistance near the recent high.
✅ Positive
- Quarterly PAT variation of +357% year-on-year highlights strong earnings momentum.
- PEG ratio of 1.52 indicates moderate valuation relative to growth.
- Debt-to-equity ratio of 0.09 reflects low leverage and financial stability.
- Stock trading close to DMA 50 and DMA 200 suggests potential support levels.
- Volume significantly above weekly average indicates strong market activity.
⚠️ Limitation
- High P/E (72.5) compared to industry PE (46.7) suggests overvaluation.
- Dividend yield of 0.00% offers no income support.
- ROCE (7.44%) and ROE (5.51%) are weak compared to peers.
- EPS of ₹3.83 is modest, limiting earnings visibility.
📉 Company Negative News
- Decline in FII holdings (-0.88%) shows reduced foreign investor confidence.
- DII holdings decreased (-0.51%), reflecting weaker domestic institutional support.
📈 Company Positive News
- Strong profit variation highlights growth potential.
- Low debt levels provide financial flexibility.
- Stock trading near support levels offers swing trade opportunity.
🏭 Industry
- Consumer goods and personal care industry remains resilient with rising demand.
- Industry PE at 46.7 highlights Honasa’s premium valuation.
- Sector outlook remains positive with increasing consumer spending and brand penetration.
🔎 Conclusion
HONASA is a growth-oriented company with strong profit variation and low debt, but high valuation and weak returns limit short-term upside. For swing trading, entry near ₹270–₹275 is favorable, with an exit target around ₹315–₹325. While fundamentals are mixed, momentum and sector demand make it a moderate candidate for swing trades, requiring cautious positioning.