MOTHERSON - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:02 am
Back to Swing Trade ListSwing Trade Rating: 3.6
| Stock Code | MOTHERSON | Market Cap | 1,27,709 Cr. | Current Price | 121 ₹ | High / Low | 121 ₹ |
| Stock P/E | 68.8 | Book Value | 36.2 ₹ | Dividend Yield | 0.48 % | ROCE | 5.16 % |
| ROE | 4.33 % | Face Value | 1.00 ₹ | DMA 50 | 112 ₹ | DMA 200 | 104 ₹ |
| Chg in FII Hold | -0.64 % | Chg in DII Hold | 0.29 % | PAT Qtr | 732 Cr. | PAT Prev Qtr | 355 Cr. |
| RSI | 55.9 | MACD | 2.67 | Volume | 1,52,80,003 | Avg Vol 1Wk | 99,03,710 |
| Low price | 71.5 ₹ | High price | 121 ₹ | PEG Ratio | 8.99 | Debt to equity | 0.18 |
| 52w Index | 99.0 % | Qtr Profit Var | 14.0 % | EPS | 1.76 ₹ | Industry PE | 30.0 |
📊 Based on the given parameters, MOTHERSON shows moderate potential for swing trading. The stock is currently at its 52-week high (121 ₹), which may act as resistance. Support levels are near 112 ₹ (DMA 50) and 104 ₹ (DMA 200). RSI at 55.9 indicates neutral momentum, while MACD at 2.67 suggests mild bullishness. The optimal entry price would be near 112–114 ₹ on pullbacks. If already holding, consider exiting around 120–122 ₹ unless strong volume confirms a breakout.
✅ Positive
- 📈 Strong quarterly profit growth (PAT up from 355 Cr. to 732 Cr.)
- 💹 Healthy trading volume above weekly average, showing active participation
- 📊 Low debt-to-equity ratio (0.18) supports financial stability
- 📈 Stock trading well above DMA 50 and DMA 200, indicating bullish trend
⚠️ Limitation
- 📉 High P/E ratio (68.8) compared to industry average (30.0)
- 📉 Weak ROCE (5.16%) and ROE (4.33%) reflect poor efficiency
- 📉 EPS remains low (1.76 ₹), limiting valuation support
- 📉 PEG ratio of 8.99 suggests overvaluation relative to growth
🚨 Company Negative News
- 📉 Decline in FII holdings (-0.64%) shows reduced foreign investor confidence
- 📉 Efficiency metrics remain weak despite profit growth
🌟 Company Positive News
- 📈 Quarterly profit variation of 14% shows consistent earnings improvement
- 📈 DII holdings increased (+0.29%), reflecting domestic institutional support
- 📈 Dividend yield of 0.48% provides minor income support
🏭 Industry
- 📊 Industry PE at 30.0, much lower than MOTHERSON’s valuation, indicating premium pricing
- 📈 Auto components sector remains cyclical, offering trading opportunities with momentum shifts
📌 Conclusion
MOTHERSON is a fair candidate for swing trading with strong profit growth and bullish technicals. However, stretched valuations and weak efficiency metrics limit upside potential. Optimal entry is near 112–114 ₹, with exit around 120–122 ₹ if already holding. Traders should watch for volume confirmation before expecting a breakout beyond 121 ₹.
Would you like me to also prepare a side-by-side comparison of MOTHERSON with SAMMAANCAP and SAILIFE to highlight which offers the best swing trade setup?
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