⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
EICHERMOT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | EICHERMOT | Market Cap | 1,91,594 Cr. | Current Price | 6,985 ₹ | High / Low | 7,614 ₹ |
| Stock P/E | 40.9 | Book Value | 701 ₹ | Dividend Yield | 1.04 % | ROCE | 31.7 % |
| ROE | 25.1 % | Face Value | 1.00 ₹ | DMA 50 | 7,159 ₹ | DMA 200 | 6,470 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 1,208 Cr. | PAT Prev Qtr | 1,306 Cr. |
| RSI | 35.2 | MACD | -68.0 | Volume | 3,08,705 | Avg Vol 1Wk | 5,61,363 |
| Low price | 4,644 ₹ | High price | 7,614 ₹ | PEG Ratio | 1.04 | Debt to equity | 0.01 |
| 52w Index | 78.8 % | Qtr Profit Var | 19.6 % | EPS | 171 ₹ | Industry PE | 27.2 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 7,614 ₹ highs and is consolidating near 6,985 ₹, showing short-term weakness but holding above long-term support.
- Moving Averages: Current price (6,985 ₹) is below 50 DMA (7,159 ₹) but above 200 DMA (6,470 ₹), indicating short-term bearishness but long-term strength.
- RSI: At 35.2, the stock is near oversold territory, suggesting potential for a rebound.
- MACD: Negative (-68.0), confirming short-term bearish momentum.
- Bollinger Bands: Price is near the lower band, signaling oversold conditions but risk of further decline.
- Volume Trends: Current volume (3,08,705) is lower than 1-week average (5,61,363), showing reduced participation in recent moves.
📊 Momentum & Signals
- Short-Term Momentum: Weak, but oversold RSI could trigger a bounce.
- Support Zones: 6,850 ₹ (near-term), 6,470 ₹ (major support at 200 DMA).
- Resistance Zones: 7,159 ₹ (50 DMA), 7,350 ₹ (trendline resistance), 7,614 ₹ (recent high).
- Entry Zone: 6,850–6,950 ₹ if RSI stabilizes.
- Exit Zone: 7,159–7,350 ₹ on rebound; strict stop-loss below 6,850 ₹.
- Trend Status: Stock is consolidating after a correction, with long-term uptrend intact.
✅ Positive
- Strong fundamentals with ROCE (31.7 %) and ROE (25.1 %) indicating efficient capital use.
- Low debt-to-equity ratio (0.01) shows excellent financial stability.
- EPS at 171 ₹ supports strong earnings power.
- Dividend yield at 1.04 % provides income support.
⚠️ Limitation
- Stock trading below 50 DMA indicates short-term weakness.
- Quarterly PAT declined (1,208 Cr. vs 1,306 Cr.), showing earnings pressure.
- High P/E (40.9) compared to industry PE (27.2) suggests premium valuation.
📉 Company Negative News
- Quarterly profit variance (-7.5 %) highlights declining earnings momentum.
- Volume participation is weakening, reducing conviction in recent moves.
📈 Company Positive News
- FII holdings increased (+0.03 %) and DII holdings also rose (+0.02 %), showing institutional confidence.
- Strong long-term fundamentals with consistent profitability and growth.
🏭 Industry
- Industry PE at 27.2 is lower than company PE (40.9), indicating EICHERMOT trades at a premium.
- Automobile sector outlook remains positive with demand recovery and premium positioning of the brand.
🔎 Conclusion
- EICHERMOT is in a consolidation phase after correction, with long-term uptrend intact.
- Short-term traders may consider entry near 6,850–6,950 ₹ with exit around 7,159–7,350 ₹.
- Long-term investors may hold due to strong fundamentals, but should be cautious of premium valuations.