HEROMOTOCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | HEROMOTOCO | Market Cap | 1,08,341 Cr. | Current Price | 5,415 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 21.5 | Book Value | 1,051 ₹ | Dividend Yield | 3.05 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,586 ₹ | DMA 200 | 5,325 ₹ |
| Chg in FII Hold | 0.67 % | Chg in DII Hold | -0.04 % | PAT Qtr | 1,439 Cr. | PAT Prev Qtr | 1,393 Cr. |
| RSI | 46.1 | MACD | -73.4 | Volume | 4,05,043 | Avg Vol 1Wk | 4,66,965 |
| Low price | 3,323 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.01 |
| 52w Index | 68.2 % | Qtr Profit Var | 19.6 % | EPS | 247 ₹ | Industry PE | 29.0 |
📊 Chart & Trend Analysis: HEROMOTOCO is trading at ₹5,415, below its 50 DMA (₹5,586) but slightly above its 200 DMA (₹5,325), showing mixed signals. RSI at 46.1 indicates neutral momentum, while MACD at -73.4 confirms bearish crossover. Bollinger Bands show price leaning toward the lower band, reflecting selling pressure. Volume is slightly below average, suggesting reduced participation.
📈 Momentum Signals: Short-term momentum is weak, with MACD negative and RSI neutral. Consolidation is likely before a breakout attempt. Oversold conditions are not yet visible, but price action suggests sideways movement with bearish bias.
💹 Entry & Exit Zones:
- Optimal Entry: ₹5,350–₹5,400 (near support zone)
- Stop-Loss: ₹5,300 (below 200 DMA)
- Exit Zone: ₹5,580–₹5,600 (near 50 DMA resistance)
- Major Resistance: ₹6,000–₹6,390 (recent high)
📉 Trend Status: The stock is consolidating with bearish bias, capped by moving averages and weak momentum indicators.
Positive
- Strong ROCE (31.5%) and ROE (23.8%) highlight efficient capital use.
- Debt-to-equity ratio of 0.01 reflects near debt-free status.
- Dividend yield of 3.05% provides attractive income for investors.
- Quarterly PAT improved to ₹1,439 Cr. from ₹1,393 Cr., showing earnings growth.
- EPS of ₹247 reflects strong profitability.
Limitation
- P/E of 21.5 is higher than industry average (29.0 is more favorable for peers).
- Price trading below 50 DMA shows weak short-term technical strength.
- MACD negative crossover confirms bearish sentiment.
Company Negative News
- DII holdings decreased (-0.04%), showing slight reduction in domestic institutional support.
- Stock corrected from its 52-week high of ₹6,390, reflecting selling pressure.
Company Positive News
- FII holdings increased (+0.67%), showing foreign investor confidence.
- Quarterly profit variation of 19.6% highlights operational improvement.
Industry
- Automobile industry benefits from rising demand in two-wheelers and rural consumption.
- Industry PE at 29.0 highlights relatively cheaper peers compared to HEROMOTOCO’s P/E of 21.5, suggesting fair valuation.
Conclusion
⚖️ HEROMOTOCO is technically consolidating with bearish bias, trading below its 50 DMA but supported by 200 DMA. Traders may consider entry near ₹5,350–₹5,400 with strict stop-loss at ₹5,300, targeting ₹5,580–₹5,600 in the short term. Long-term investors may find value given strong fundamentals, low debt, and attractive dividend yield, but should monitor momentum indicators for confirmation of reversal.
Would you like me to extend this into a peer benchmarking overlay (e.g., Bajaj Auto, TVS Motor, Eicher Motors) so you can evaluate sector rotation opportunities alongside HEROMOTOCO?