HONAUT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | HONAUT | Market Cap | 25,177 Cr. | Current Price | 28,455 ₹ | High / Low | 41,600 ₹ |
| Stock P/E | 49.1 | Book Value | 4,738 ₹ | Dividend Yield | 0.37 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 31,494 ₹ | DMA 200 | 34,794 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.46 % | PAT Qtr | 129 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 26.8 | MACD | -758 | Volume | 3,592 | Avg Vol 1Wk | 4,135 |
| Low price | 28,355 ₹ | High price | 41,600 ₹ | PEG Ratio | 3.15 | Debt to equity | 0.02 |
| 52w Index | 0.76 % | Qtr Profit Var | -2.51 % | EPS | 571 ₹ | Industry PE | 28.0 |
📊 HONAUT shows modest fundamentals with weak technicals and stretched valuations. The RSI at 26.8 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-758) and price trading well below both the 50 DMA (₹31,494) and 200 DMA (₹34,794) reflect strong bearish sentiment. Fundamentals are moderate with ROCE (18.4%) and ROE (13.7%), but quarterly PAT declined (-2.51%). Valuation is expensive with a P/E of 49.1 compared to industry P/E of 28.0, and PEG ratio (3.15) suggests limited growth relative to valuation.
💡 Optimal Entry Price: ₹28,300–₹28,600, near the recent low of ₹28,355.
📈 Exit Strategy (if already holding): Consider exiting around ₹31,400–₹31,600 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- EPS of ₹571 supports valuation strength.
- Low debt-to-equity ratio (0.02) indicates financial stability.
- FII holdings increased (+0.46%), showing foreign investor confidence.
⚠️ Limitation
- High P/E (49.1) compared to industry average (28.0).
- PEG ratio of 3.15 suggests limited growth potential.
- Dividend yield of 0.37% is very low.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
📉 Company Negative News
- DII holdings declined (-0.46%), showing reduced domestic institutional support.
- Quarterly PAT declined from ₹120 Cr. to ₹129 Cr. (-2.51%).
- Weak technical indicators (RSI, MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- FII holdings increased (+0.46%), showing foreign investor confidence.
- EPS of ₹571 reflects strong profitability base.
🏭 Industry
- Automation and industrial technology sector remains resilient with steady demand.
- Industry P/E at 28.0 makes HONAUT relatively expensive (P/E 49.1).
🔎 Conclusion
HONAUT is fundamentally stable with strong EPS but faces short-term technical weakness and stretched valuations. It may be suitable for swing trading if entered near ₹28,300–₹28,600, with a target around ₹31,400–₹31,600. Traders should monitor RSI recovery and volume trends before committing heavily.