MOTHERSON - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for MOTHERSON based on the provided parameters
Swing Trade Rating: 3.5
| Stock Code | MOTHERSON | Market Cap | 1,52,597 Cr. | Current Price | 145 ₹ | High / Low | 152 ₹ |
| Stock P/E | 84.8 | Book Value | 36.3 ₹ | Dividend Yield | 0.41 % | ROCE | 5.22 % |
| ROE | 4.75 % | Face Value | 1.00 ₹ | DMA 50 | 134 ₹ | DMA 200 | 120 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.49 % | PAT Qtr | 483 Cr. | PAT Prev Qtr | 230 Cr. |
| RSI | 58.5 | MACD | 4.04 | Volume | 1,64,94,574 | Avg Vol 1Wk | 1,74,22,490 |
| Low price | 89.7 ₹ | High price | 152 ₹ | PEG Ratio | 2.66 | Debt to equity | 0.22 |
| 52w Index | 88.6 % | Qtr Profit Var | -25.2 % | EPS | 1.70 ₹ | Industry PE | 27.6 |
📊 Analysis: MOTHERSON shows moderate swing trading potential. Current price (145 ₹) is above both DMA 50 (134 ₹) and DMA 200 (120 ₹), reflecting bullish momentum. RSI at 58.5 indicates positive strength, while MACD (4.04) supports short-term upside. However, fundamentals are weak with low ROE (4.75%), ROCE (5.22%), and high P/E (84.8 vs industry 27.6). EPS (1.70 ₹) remains modest, and quarterly profit variation (-25.2%) raises caution despite PAT improvement (483 Cr. vs 230 Cr.).
💰 Optimal Entry: Entry zone lies between 138 ₹ – 142 ₹, near DMA 50 support.
🔑 Exit Strategy: If already holding, consider exiting around 150 ₹ – 152 ₹, near recent highs and resistance levels.
✅ Positive
- Price trading above DMA 50 and DMA 200 confirms bullish trend.
- Strong PAT improvement (483 Cr. vs 230 Cr.).
- Low debt-to-equity ratio (0.22) ensures financial stability.
- FII holdings increased (+0.70%), showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio (84.8) compared to industry average (27.6).
- Weak ROE (4.75%) and ROCE (5.22%).
- Quarterly profit variation (-25.2%) signals earnings inconsistency.
- EPS (1.70 ₹) remains modest relative to valuation.
📉 Company Negative News
- DII holdings decreased (-0.49%), showing reduced domestic institutional support.
- Profit variation indicates volatility in earnings performance.
📈 Company Positive News
- FII holdings increased (+0.70%), reflecting foreign investor confidence.
- PAT doubled compared to the previous quarter, showing operational improvement.
🏭 Industry
- Industry PE at 27.6 vs MOTHERSON’s 84.8 — stock trades at a steep premium.
- Auto components sector remains cyclical but supported by global demand recovery.
🔎 Conclusion
⚖️ MOTHERSON is a fair swing trade candidate with rating 3.5. Entry near 138–142 ₹ offers a risk-managed setup, while exits around 150–152 ₹ are advisable if already holding. Technicals support short-term upside, but weak fundamentals and high valuation warrant caution.
Would you like me to extend this into a peer benchmarking to compare MOTHERSON’s swing trade strength against other auto component leaders?