EICHERMOT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.0

📊 Technical Analysis

• Chart Patterns: Price (7,217 ₹) is above both 50 DMA (6,977 ₹) and 200 DMA (6,201 ₹), showing strong bullish alignment.
• Moving Averages: Positive bias with price sustaining above short-term and long-term averages.
• RSI: 51.3 → neutral to slightly bullish, suggesting balanced momentum with room for upside.
• MACD: 43.8 → bullish crossover, confirming upward momentum.
• Bollinger Bands: Price near upper band, indicating bullish strength but risk of near-term consolidation.
• Volume Trends: Current volume (3.37 Lakh) is below 1-week average (5.38 Lakh), showing reduced participation despite bullish signals.

📈 Momentum & Signals

• Short-term Momentum: Bullish bias supported by MACD and price above DMAs.
• Support Zones: 7,000 ₹ (near-term), 6,800 ₹ (strong support), 6,500 ₹ (major support).
• Resistance Zones: 7,250 ₹ (near-term), 7,328 ₹ (recent high), 7,500 ₹ (psychological resistance).
• Optimal Entry: 7,000–6,800 ₹ range on dips.
• Optimal Exit: 7,250–7,500 ₹ range unless breakout above 7,500 ₹.
• Trend Status: Stock is trending upward with bullish bias; consolidation possible near resistance levels.

✅ Positive

• Strong ROCE (31.7%) and ROE (25.1%) indicate excellent capital efficiency.
• EPS of 171 ₹ supports valuation strength.
• FII holdings increased (+1.16%), showing foreign investor confidence.
• Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.

⚠️ Limitation

• Quarterly PAT declined from 1,306 Cr. to 1,208 Cr., showing earnings pressure.
• DII holdings decreased (-1.05%), showing reduced domestic institutional support.
• High P/E (42.2) compared to industry PE (29.6), indicating premium valuation.

📉 Company Negative News

• Quarterly PAT decline highlights margin pressures.
• DII holdings reduced, reflecting cautious domestic sentiment.

📈 Company Positive News

• FII holdings increased, showing strong foreign investor confidence.
• Quarterly profit variation (+19.6%) indicates year-on-year improvement.
• Debt-free status supports financial stability.

🏭 Industry

• Industry PE at 29.6, lower than company PE (42.2), suggesting Eicher Motors trades at a premium.
• Automobile sector remains cyclical but benefits from premium motorcycle demand and export growth.

🔎 Conclusion

• Stock is trending upward with bullish bias supported by MACD and price above DMAs.
• Best entry near 7,000–6,800 ₹; exit near 7,250–7,500 ₹ unless breakout above 7,500 ₹.
• Long-term investors benefit from strong fundamentals and debt-free status, but should monitor valuation risks and earnings pressure.