MOTHERSON - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📉 Current Price: ₹104

📊 Optimal Entry Price: ₹100–102 (near 200 DMA support)

📈 Suggested Exit (if holding): ₹118–122 (below 52-week high resistance)

🔷 Positive

• 📈 Above 200 DMA: Price trading above 200 DMA (₹101) indicates medium-term strength
• 📉 Low Debt: Debt-to-equity ratio of 0.13 reflects financial discipline
• 📊 MACD Positive: Bullish crossover supports short-term momentum
• 📈 Quarterly Profit Growth: 112% variation shows strong earnings rebound
• 📈 ROCE & ROE Improving: Though modest, trending upward from previous quarters

⚠️ Limitation

• 📉 High P/E: 62.4 vs industry average of 32.8 suggests overvaluation
• 📉 Weak ROCE & ROE: ROCE at 5.16% and ROE at 4.33% are below ideal levels
• 📉 PEG Ratio: 8.14 indicates expensive valuation relative to growth
• 📉 Flat Volume: Current volume (94.3L) close to 1-week average, lacking breakout strength

🚫 Company Negative News

• 📉 Sequential PAT Decline: PAT dropped from ₹645 Cr to ₹355 Cr QoQ
• 📉 FII Selling: Foreign institutional holding declined by 0.64%

✅ Company Positive News

• 🚗 EV Segment Expansion: Motherson investing in electric vehicle components globally
• 🌍 Global Order Wins: Secured new contracts from European OEMs
• 📈 Strong Qtr YoY Growth: Revenue and profit up significantly YoY

🏭 Industry

• 🚘 Auto Ancillary Sector: Benefiting from EV adoption and global supply chain diversification
• 📉 Valuation Pressure: Sector trading at elevated multiples amid cyclical demand risks

🧾 Conclusion

MOTHERSON offers a moderate swing trade setup with improving fundamentals and technical support near 200 DMA. While valuation remains a concern, its global expansion and EV focus provide upside potential. Entry near ₹100–102 is ideal, with exit near ₹118–122. Watch for volume breakout and RSI movement before initiating new trades.

I can chart MOTHERSON’s price action with support/resistance zones if you'd like a visual timing guide.