UNOMINDA - Swing Trade Analysis

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

Swing Trade Rating: 3.7

📊 Analysis Summary

UNOMINDA is a fundamentally strong auto component stock with solid return ratios and long-term momentum. However, its high valuation and flat short-term earnings make it a moderate swing trade candidate. The technicals suggest consolidation near support, and a breakout could offer a short-term opportunity.

✅ Strengths Supporting a Swing Trade

ROCE: 18.8% & ROE: 17.5%

Strong profitability — above industry average.

MACD: +2.13

Bullish crossover — signals upward momentum.

Trading Near DMA 50 & Above DMA 200

Technically stable — potential for bounce from support.

EPS: ₹16.4

Solid earnings base.

DII Holding ↑ 0.65%

Domestic institutions accumulating — positive sentiment.

52W Index: 62.5%

Strong yearly performance — momentum intact.

⚠️ Risks to Watch

P/E: 65.9 vs Industry PE: 31.2

Highly overvalued — priced for aggressive growth.

PEG Ratio: 1.67

Slightly expensive relative to growth.

RSI: 48.3

Neutral — no clear overbought/oversold signal.

Quarterly PAT Decline: ₹233 Cr. → ₹266 Cr.

Flat earnings — no strong growth catalyst.

FII Holding ↓ 0.50%

Foreign investors reducing exposure — sentiment cautious.

Volume Slightly Below Average

No surge in buying interest yet.

🎯 Optimal Entry Price

Entry Zone: ₹1,050–₹1,065

Near DMA 50 support — wait for bullish confirmation or volume spike.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,120–₹1,140

Near recent resistance — good level to book profits.

Stop Loss: ₹1,020

Below DMA 200 — protects against downside risk.

Would you like to explore other auto component stocks with stronger earnings momentum and lower valuation for swing trading?

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