HEROMOTOCO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.2

📈 Hero MotoCorp is in a strong uptrend with bullish momentum indicators and favorable technical structure.

📊 Technical Analysis

• Trend Status: Trending — price is in a clear uptrend, supported by higher highs and higher lows.
• Moving Averages: Current price ₹5,537 is above both 50-DMA (₹5,337) and 200-DMA (₹4,763), confirming bullish momentum.
• RSI (53.7): Neutral to bullish zone, indicating room for further upside.
• MACD (57.6): Positive and rising, suggesting continued upward momentum.
• Bollinger Bands: Price is near the upper band, indicating strength but also potential short-term resistance.
• Volume: Slightly below average (4.31L vs 4.57L), but not diverging significantly from price action.

🎯 Entry & Exit Zones

• Support Levels: ₹5,337 (50-DMA), ₹5,200
• Resistance Levels: ₹5,658, ₹5,706, ₹5,748
• Optimal Entry: ₹5,350–₹5,400 (on pullback to 50-DMA)
• Exit Target: ₹5,700–₹5,750 (near resistance zone)

✅ Positive

• Strong ROCE (31.5%) and ROE (23.8%) reflect excellent capital efficiency.
• Low debt-to-equity ratio (0.01) indicates a virtually debt-free balance sheet.
• High dividend yield (2.99%) adds to investor appeal.
• PEG ratio of 1.04 suggests fair valuation relative to growth.

⚠️ Limitation

• Volume slightly below average, indicating cautious participation.
• Stock near 52-week high (₹5,717), which may act as resistance.
• Minor decline in DII holdings (-1.45%) could reflect short-term caution.

📉 Company Negative News

• Quarterly profit growth is marginal (0.27%), indicating earnings plateau.
• Stock may face resistance near all-time highs, limiting immediate upside.

📈 Company Positive News

• FII holdings increased by 1.71%, showing growing foreign investor confidence.
• Consistent profitability with ₹1,126 Cr PAT in the latest quarter.
• Strong return metrics and stable earnings profile.

🏭 Industry

• Auto sector is rebounding with strong rural demand and festive season tailwinds.
• Industry P/E (39.7) is significantly higher than Hero’s P/E (24.0), indicating relative undervaluation.

🧾 Conclusion

• Hero MotoCorp is technically strong and in a bullish trend.
• Ideal for short-term entry on dips near ₹5,350 with targets around ₹5,700–₹5,750.
• Long-term investors may find value given strong fundamentals and attractive valuation.

Sources: Simply Wall St, ET Money Technicals, Investing.com