TVSMOTOR - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.2

📊 Analysis Summary

TVSMOTOR is a fundamentally strong stock with impressive earnings growth and high ROE, but its technical indicators are currently weak, and valuation is stretched. It’s a watchlist candidate for swing trading, best entered on signs of momentum reversal.

✅ Strengths

ROE (28.4%) & ROCE (15.4%): Strong capital efficiency.

EPS of ₹47.1: Robust earnings base.

Quarterly PAT Growth (+68.9%): Excellent earnings momentum.

PEG Ratio (1.46): Reasonable valuation relative to growth.

FII Buying (+0.94%): Foreign institutional interest.

Volume Above Average: Current volume (8.62L) > 1-week average (6.81L).

Trading near 50 DMA (₹2,795): Potential support zone.

⚠️ Weaknesses

P/E (61.3) vs Industry PE (31.1): Highly overvalued.

MACD Negative (-6.84): Bearish momentum signal.

RSI at 46.7: Weak — no clear trend.

DII Selling (-0.93%): Domestic institutions reducing exposure.

Debt-to-Equity (3.36): Very high leverage — financial risk.

Dividend Yield (0.36%): Low income support.

52w Index at 79.9%: Near yearly high — limited upside.

📈 Optimal Entry Price

Buy Zone: ₹2,750–₹2,780 Near 50 DMA — enter only if MACD flattens and RSI crosses 50.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹2,900–₹2,940 Near recent high — consider booking profits before resistance.

Stop Loss: ₹2,720 Below 50 DMA — exit if bearish momentum continues.

🧠 Final Thoughts

TVSMOTOR is a fundamentally strong but technically weak swing trade setup. It’s best approached with caution and tight risk controls. Wait for momentum confirmation before entering, or consider exiting near highs if already holding.

Want to compare it with Bajaj Auto or Hero MotoCorp for better swing setups?

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