MOTHERSON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | MOTHERSON | Market Cap | 1,29,312 Cr. | Current Price | 123 ₹ | High / Low | 125 ₹ |
| Stock P/E | 69.8 | Book Value | 36.2 ₹ | Dividend Yield | 0.46 % | ROCE | 5.16 % |
| ROE | 4.33 % | Face Value | 1.00 ₹ | DMA 50 | 115 ₹ | DMA 200 | 107 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.59 % | PAT Qtr | 732 Cr. | PAT Prev Qtr | 355 Cr. |
| RSI | 64.7 | MACD | 0.19 | Volume | 1,40,81,942 | Avg Vol 1Wk | 1,68,46,381 |
| Low price | 71.5 ₹ | High price | 125 ₹ | PEG Ratio | 9.11 | Debt to equity | 0.18 |
| 52w Index | 94.6 % | Qtr Profit Var | 14.0 % | EPS | 1.76 ₹ | Industry PE | 28.7 |
📊 MOTHERSON shows moderate potential for swing trading. The current price (123 ₹) is very close to its 52-week high (125 ₹), suggesting limited immediate upside. RSI at 64.7 indicates the stock is approaching overbought territory, while MACD (0.19) reflects mild bullishness. The price is comfortably above both the 50 DMA (115 ₹) and 200 DMA (107 ₹), showing strong momentum. Fundamentals are mixed: quarterly PAT nearly doubled (355 Cr. to 732 Cr.), but high P/E (69.8 vs industry PE of 28.7) and weak ROE (4.33%) raise valuation concerns.
💡 Optimal Entry Price: Around 115–118 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 125–130 ₹ (resistance zone and recent high) or if RSI crosses 70 with weakening momentum.
✅ Positive
- Quarterly PAT surged from 355 Cr. to 732 Cr. (14% variation, strong growth).
- EPS of 1.76 ₹ shows earnings recovery.
- Debt-to-equity ratio of 0.18 indicates low leverage risk.
- DII holdings increased (+0.59%), showing domestic institutional support.
⚠️ Limitation
- High P/E of 69.8 compared to industry PE of 28.7 suggests overvaluation.
- ROCE (5.16%) and ROE (4.33%) are weak, showing limited efficiency.
- Dividend yield of 0.46% is modest.
- FII holdings decreased (-0.24%), showing reduced foreign investor interest.
📉 Company Negative News
- Valuation concerns due to high P/E and PEG ratio (9.11).
- Weak return ratios compared to peers.
📈 Company Positive News
- Strong quarterly profit growth supports fundamentals.
- Stock trading above both 50 DMA and 200 DMA shows strong momentum.
- Low debt-to-equity ratio enhances financial stability.
🏭 Industry
- Industry PE at 28.7 vs MOTHERSON’s 69.8 highlights premium valuation.
- Auto components sector remains cyclical but benefits from global demand recovery.
🔎 Conclusion
MOTHERSON is a moderately attractive swing trade candidate. Entry near 115–118 ₹ offers a safer risk-reward setup, with exit targets around 125–130 ₹. Strong profit growth and momentum support the stock, but high valuations and weak efficiency metrics suggest cautious trading. Suitable for short-term traders monitoring resistance levels closely.