HONASA - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.6
| Stock Code | HONASA | Market Cap | 8,790 Cr. | Current Price | 270 ₹ | High / Low | 334 ₹ |
| Stock P/E | 70.6 | Book Value | 38.8 ₹ | Dividend Yield | 0.00 % | ROCE | 7.44 % |
| ROE | 5.51 % | Face Value | 10.0 ₹ | DMA 50 | 277 ₹ | DMA 200 | 288 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 0.25 % | PAT Qtr | 38.4 Cr. | PAT Prev Qtr | 39.9 Cr. |
| RSI | 36.9 | MACD | -7.63 | Volume | 5,58,675 | Avg Vol 1Wk | 12,70,524 |
| Low price | 190 ₹ | High price | 334 ₹ | PEG Ratio | 1.48 | Debt to equity | 0.09 |
| 52w Index | 55.6 % | Qtr Profit Var | 357 % | EPS | 3.83 ₹ | Industry PE | 49.7 |
📊 Honasa (HONASA) shows moderate potential for swing trading. The stock is trading below both its 50 DMA (₹277) and 200 DMA (₹288), reflecting short-term weakness. RSI at 36.9 indicates oversold conditions, while MACD negative (-7.63) suggests bearish momentum. An optimal entry would be near ₹260–₹265. If already holding, consider exiting around ₹290–₹300, where resistance from DMA levels is expected.
Positive
- ✅ Quarterly PAT growth from ₹39.9 Cr. to ₹38.4 Cr. (+357% YoY) highlights strong earnings momentum despite sequential dip.
- ✅ PEG ratio of 1.48 suggests fair valuation relative to growth.
- ✅ DII holdings increased by 0.25%, showing domestic institutional support.
- ✅ Debt-to-equity ratio of 0.09 indicates low leverage risk.
- ✅ 52-week performance of 55.6% reflects investor confidence.
Limitation
- ⚠️ High P/E of 70.6 compared to industry average of 49.7 suggests overvaluation.
- ⚠️ ROCE (7.44%) and ROE (5.51%) are relatively weak compared to peers.
- ⚠️ Dividend yield of 0.00% offers no income support for investors.
- ⚠️ Trading below DMA levels signals weak technical momentum.
- ⚠️ Volume below weekly average (5.58L vs 12.7L) indicates reduced market participation.
Company Negative News
- ❌ Sequential decline in PAT (₹39.9 Cr. → ₹38.4 Cr.) shows short-term earnings pressure.
- ❌ FII holdings dropped by 0.59%, reflecting reduced foreign investor interest.
Company Positive News
- 🌟 Strong YoY profit growth boosts investor confidence.
- 🌟 Low debt levels ensure financial stability.
- 🌟 Domestic institutional support adds resilience to stock performance.
Industry
- 🏭 FMCG/consumer industry trades at PE of 49.7, lower than Honasa’s PE of 70.6, suggesting relative overvaluation.
- 🏭 Sector growth driven by digital-first brands and rising consumer demand supports long-term prospects.
Conclusion
📌 Honasa is a moderately strong candidate for swing trading, supported by YoY profit growth and low debt. Entry near ₹260–₹265 is optimal, with exit around ₹290–₹300. Traders should be cautious of high valuation, weak ROCE/ROE, and declining foreign investor interest, but fundamentals and domestic support provide some stability.
I can also prepare a peer comparison with Nykaa or Dabur to highlight relative swing trade opportunities in the consumer sector.
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