EICHERMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | EICHERMOT | Market Cap | 2,03,425 Cr. | Current Price | 7,420 ₹ | High / Low | 8,233 ₹ |
| Stock P/E | 40.0 | Book Value | 795 ₹ | Dividend Yield | 0.94 % | ROCE | 32.9 % |
| ROE | 25.2 % | Face Value | 1.00 ₹ | DMA 50 | 7,153 ₹ | DMA 200 | 6,875 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.09 % | PAT Qtr | 1,236 Cr. | PAT Prev Qtr | 1,333 Cr. |
| RSI | 61.1 | MACD | 25.9 | Volume | 3,02,176 | Avg Vol 1Wk | 6,81,364 |
| Low price | 5,220 ₹ | High price | 8,233 ₹ | PEG Ratio | 1.62 | Debt to equity | 0.01 |
| 52w Index | 73.0 % | Qtr Profit Var | 9.88 % | EPS | 184 ₹ | Industry PE | 28.0 |
Chart & Trend Analysis:
EICHERMOT is trading at ₹7,420, comfortably above its 50 DMA (₹7,153) and 200 DMA (₹6,875), confirming a strong bullish trend. RSI at 61.1 indicates healthy momentum without being overbought. MACD at 25.9 shows a positive crossover, reinforcing upward momentum. Bollinger Bands suggest price is near the upper band, reflecting strength with controlled volatility. Current volume (3.02L) is lower than the weekly average (6.81L), showing reduced participation but steady price action.
Momentum Signals:
- RSI above 60 signals bullish continuation.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹7,600–7,650 (short-term), ₹8,000–8,050 (major).
- Support zones: ₹7,150–7,200 (50 DMA), deeper support at ₹6,875 (200 DMA).
- Trend status: Strong uptrend with consolidation potential near resistance.
Entry Zone: ₹7,200–7,300 (ideal accumulation zone)
Exit Zone: ₹7,950–8,050 (profit booking zone)
Stop-Loss: Below ₹6,850
Positive
- Strong ROCE (32.9%) and ROE (25.2%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- EPS at ₹184 reflects robust earnings power.
- PEG ratio at 1.62 suggests balanced valuation relative to growth.
Limitation
- Quarterly PAT declined (₹1,236 Cr vs ₹1,333 Cr), showing slight earnings pressure.
- FII holdings decreased (-0.24%), indicating cautious foreign sentiment.
- High P/E (40.0) compared to industry average (28.0).
Company Negative News
- Sequential decline in quarterly profits highlights margin pressure.
- Reduced FII participation may limit near-term upside.
Company Positive News
- Strong fundamentals with consistent profitability and efficiency ratios.
- DIIs increased holdings (+0.09%), showing domestic institutional support.
Industry
- Industry PE at 28.0 is lower than company’s PE, suggesting premium valuation.
- Automobile sector remains resilient with demand recovery and premium positioning.
Conclusion
EICHERMOT is in a strong uptrend, trading above key moving averages with bullish RSI and MACD signals. Entry near ₹7,200–7,300 offers a favorable risk-reward setup, with exit potential around ₹7,950–8,050. Fundamentals remain robust, making it suitable for swing trades and medium-term holdings, though valuation premium requires cautious monitoring.
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