HEROMOTOCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | HEROMOTOCO | Market Cap | 1,10,076 Cr. | Current Price | 5,502 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 22.9 | Book Value | 1,051 ₹ | Dividend Yield | 3.00 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,694 ₹ | DMA 200 | 5,232 ₹ |
| Chg in FII Hold | 0.67 % | Chg in DII Hold | -0.04 % | PAT Qtr | 1,393 Cr. | PAT Prev Qtr | 1,126 Cr. |
| RSI | 40.8 | MACD | -92.9 | Volume | 4,44,723 | Avg Vol 1Wk | 4,47,089 |
| Low price | 3,323 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.99 | Debt to equity | 0.01 |
| 52w Index | 71.1 % | Qtr Profit Var | 15.7 % | EPS | 240 ₹ | Industry PE | 27.2 |
📊 Chart & Trend Analysis: HEROMOTOCO is trading at ₹5,502, below its 50 DMA (₹5,694) but above its 200 DMA (₹5,232), indicating short-term weakness but medium-term support. RSI at 40.8 suggests the stock is approaching oversold territory. MACD at -92.9 confirms bearish momentum. Current volume (4.44L) is nearly equal to the weekly average (4.47L), showing stable participation. Bollinger Bands indicate price drifting towards the lower band, reinforcing bearish consolidation.
📈 Momentum Signals: Short-term momentum is negative, with RSI near oversold and MACD bearish crossover. Stable volume suggests consolidation rather than panic selling.
🎯 Entry Zone: ₹5,450 – ₹5,500 (near immediate support)
🚪 Exit Zone: ₹5,650 – ₹5,700 (near resistance at 50 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹5,450 could trigger reversal towards ₹5,300, while recovery above ₹5,700 may signal bullish trend resumption.
Positive
- Strong ROCE (31.5%) and ROE (23.8%) highlight efficient capital use.
- Debt-to-equity ratio of 0.01 indicates negligible leverage risk.
- Dividend yield of 3.00% adds investor appeal.
- Quarterly PAT growth from ₹1,126 Cr. to ₹1,393 Cr. shows earnings momentum.
- EPS of ₹240 reflects strong profitability.
Limitation
- Stock trading below 50 DMA signals short-term weakness.
- MACD strongly negative (-92.9) confirms bearish momentum.
- 52-week index at 71.1% shows the stock is far from its highs.
Company Negative News
- Marginal decline in DII holding (-0.04%) signals reduced domestic institutional support.
Company Positive News
- Increase in FII holding (+0.67%) reflects foreign investor confidence.
- Quarterly profit variation of 15.7% shows strong earnings growth.
Industry
- Automobile sector remains resilient with demand recovery in two-wheelers.
- Industry P/E at 27.2 highlights moderate sector valuation compared to HEROMOTOCO’s discount.
Conclusion
⚖️ HEROMOTOCO is consolidating with a bearish bias. Entry near ₹5,450–₹5,500 offers cautious accumulation, while exits near ₹5,650–₹5,700 provide short-term profit booking. Strong fundamentals and low leverage support long-term holding, but current technical weakness and bearish momentum warrant patience for better entry opportunities.
Would you like me to extend this into a peer benchmarking overlay (Bajaj Auto, TVS Motor, Eicher Motors) so you can compare HEROMOTOCO’s relative strength within the two-wheeler basket?