EICHERMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | EICHERMOT | Market Cap | 1,92,689 Cr. | Current Price | 7,029 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 38.8 | Book Value | 701 ₹ | Dividend Yield | 1.00 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,401 ₹ | DMA 200 | 6,762 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,333 Cr. | PAT Prev Qtr | 1,208 Cr. |
| RSI | 40.7 | MACD | -178 | Volume | 5,84,016 | Avg Vol 1Wk | 8,44,592 |
| Low price | 5,000 ₹ | High price | 8,233 ₹ | PEG Ratio | 0.99 | Debt to equity | 0.01 |
| 52w Index | 62.8 % | Qtr Profit Var | 26.2 % | EPS | 180 ₹ | Industry PE | 29.0 |
📉 Chart & Trend: EICHERMOT is trading at ₹7,029, below its 50 DMA (₹7,401) but above the 200 DMA (₹6,762). This indicates short-term weakness but long-term support. The stock is in a consolidation-to-correction
📊 Momentum Indicators:
- RSI at 40.7 shows weak momentum, leaning towards oversold territory.
- MACD at -178 confirms bearish crossover and selling pressure.
- Bollinger Bands: Price is near the lower band, suggesting limited downside but no strong reversal yet.
- Volume is below average, showing reduced participation and lack of strong buying interest.
📈 Support & Resistance:
- Immediate support: ₹6,750 (near 200 DMA).
- Strong support: ₹5,000 (52-week low).
- Resistance zones: ₹7,400 (50 DMA) and ₹8,000–8,200 (recent highs).
- Optimal entry: ₹6,700–6,800 near support.
- Exit zone: ₹7,800–8,000 if momentum recovers.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting confirmation for reversal above 50 DMA.
Positive
- Strong ROCE (31.7%) and ROE (25.1%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.01) indicates robust financial health.
- EPS of ₹180 shows strong earnings power.
- PAT improved to ₹1,333 Cr from ₹1,208 Cr, reflecting growth momentum.
Limitation
- Current price below 50 DMA signals short-term weakness.
- RSI and MACD both show bearish signals, limiting immediate upside.
- High P/E of 38.8 compared to industry PE of 29.0 suggests premium valuation.
Company Negative News
- Short-term technical weakness with price below 50 DMA.
- Volume trend is declining, reducing breakout potential.
Company Positive News
- FII holding increased by +0.03% and DII holding by +0.02%, showing institutional confidence.
- Quarterly profit growth of 26.2% indicates strong operational performance.
Industry
- Automobile sector is cyclical, influenced by demand trends and macroeconomic conditions.
- Industry PE at 29.0 is lower than EICHERMOT’s PE, suggesting premium valuation for brand strength and market leadership.
Conclusion
📌 EICHERMOT is consolidating with bearish bias, trading below its 50 DMA but supported by strong fundamentals. Entry is favorable around ₹6,700–6,800 with stop-loss below ₹6,500. Short-term rebound may target ₹7,800–8,000, but sustained breakout requires volume confirmation. Fundamentally strong, making it attractive for long-term investors despite short-term technical weakness.
Would you like me to extend this into a peer benchmarking overlay against Bajaj Auto, TVS Motor, and Hero MotoCorp to highlight relative strength and sector rotation opportunities?