MOTHERSON - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

📊 Swing Trade Analysis for MOTHERSON

MOTHERSON is showing strong technical momentum and trend confirmation, making it a viable candidate for swing trading — though valuation and recent earnings volatility warrant caution.

✅ Strengths

Bullish Momentum: RSI at 70.8 indicates strong upward momentum, nearing overbought territory. MACD at 3.13 confirms bullish crossover.

Trend Confirmation: Price is well above both 50 DMA (₹99.2) and 200 DMA (₹98.8), reinforcing a sustained uptrend.

Low Leverage: Debt-to-equity ratio of 0.13 adds financial stability.

Strong Qtr Profit Growth: 112% jump in quarterly profit shows earnings rebound.

Institutional Interest: FII holdings increased by 0.25%, a mild but positive signal.

⚠️ Weaknesses

Overvaluation: P/E of 65.2 vs industry average of 29.1 and PEG of 8.51 suggest stretched valuation.

Earnings Volatility: PAT dropped from ₹645 Cr. to ₹355 Cr. sequentially — a sharp decline.

Weak ROE/ROCE: ROE at 4.33% and ROCE at 5.16% reflect poor capital efficiency.

Volume Drop: Current volume is less than half the 1-week average, indicating waning short-term interest.

🎯 Optimal Entry Price

Entry Zone: ₹102–₹105

A pullback near the 50 DMA would offer a better risk-reward entry with trend support.

🚪 Exit Strategy (If Already Holding)

Target Exit: ₹120–₹125

A reasonable upside before hitting resistance near ₹130.

Stop-Loss: ₹98

Just below the 200 DMA to protect against reversal.

🧠 Final Thought

MOTHERSON is technically strong but fundamentally stretched. It’s suitable for a short-term swing with tight risk controls. Watch for RSI cooling below 65 and volume pickup for a safer entry.

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