MOTHERSON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | MOTHERSON | Market Cap | 1,26,781 Cr. | Current Price | 120 ₹ | High / Low | 136 ₹ |
| Stock P/E | 64.6 | Book Value | 36.2 ₹ | Dividend Yield | 0.47 % | ROCE | 5.16 % |
| ROE | 4.33 % | Face Value | 1.00 ₹ | DMA 50 | 120 ₹ | DMA 200 | 114 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.49 % | PAT Qtr | 230 Cr. | PAT Prev Qtr | 732 Cr. |
| RSI | 48.6 | MACD | 1.69 | Volume | 1,08,03,975 | Avg Vol 1Wk | 1,51,59,872 |
| Low price | 86.9 ₹ | High price | 136 ₹ | PEG Ratio | 8.43 | Debt to equity | 0.18 |
| 52w Index | 67.6 % | Qtr Profit Var | 89.0 % | EPS | 1.86 ₹ | Industry PE | 27.6 |
📊 MOTHERSON shows moderate potential for swing trading. The RSI at 48.6 indicates neutral momentum, while the MACD is slightly positive (1.69), suggesting mild bullishness. The current price (120 ₹) is aligned with the 50 DMA (120 ₹) and above the 200 DMA (114 ₹), reflecting consolidation with short-term support. Fundamentals are weak with ROCE at 5.16% and ROE at 4.33%, while valuation is expensive (P/E 64.6 vs industry average 27.6). Earnings volatility is high, as PAT dropped sharply (230 Cr vs 732 Cr). Strong 52-week performance (+67.6%) provides some confidence, but profitability remains a concern.
💡 Optimal Entry Price: Around 115–118 ₹, near the 200 DMA support zone.
📈 Exit Strategy: If already holding, consider exiting near 125–128 ₹, where resistance may emerge.
Positive
- Strong 52-week performance (+67.6%).
- Low debt-to-equity ratio (0.18) reduces financial risk.
- EPS of 1.86 ₹ shows earnings visibility.
- FII holdings increased (+0.70%), reflecting foreign investor confidence.
Limitation
- High P/E ratio (64.6) compared to industry average (27.6), making valuation expensive.
- Weak profitability: ROCE (5.16%) and ROE (4.33%) are low.
- PAT dropped significantly (230 Cr vs 732 Cr), showing earnings volatility.
- Trading volume (1.08 Cr) is below 1-week average (1.51 Cr), indicating reduced participation.
Company Negative News
- DII holdings decreased (-0.49%), showing reduced domestic institutional support.
- Sharp decline in quarterly PAT highlights earnings pressure.
Company Positive News
- FII holdings increased (+0.70%), showing foreign investor confidence.
- Quarterly profit variation (+89%) highlights past growth momentum despite recent volatility.
Industry
- Industry PE is 27.6, much lower than MOTHERSON’s 64.6, suggesting peers may be more attractively valued.
- Auto components sector remains cyclical, influenced by global demand and supply chain dynamics.
Conclusion
⚖️ MOTHERSON is a moderate candidate for swing trading. Entry near 115–118 ₹ could provide a rebound opportunity, with upside capped around 125–128 ₹. Strong 52-week performance and low debt are positives, but expensive valuation and weak profitability warrant cautious positioning.