HEROMOTOCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | HEROMOTOCO | Market Cap | 1,02,026 Cr. | Current Price | 5,099 ₹ | High / Low | 6,390 ₹ |
| Stock P/E | 20.2 | Book Value | 1,051 ₹ | Dividend Yield | 3.24 % | ROCE | 31.5 % |
| ROE | 23.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,305 ₹ | DMA 200 | 5,288 ₹ |
| Chg in FII Hold | 1.72 % | Chg in DII Hold | -1.59 % | PAT Qtr | 1,439 Cr. | PAT Prev Qtr | 1,393 Cr. |
| RSI | 45.4 | MACD | -69.2 | Volume | 4,92,867 | Avg Vol 1Wk | 5,47,780 |
| Low price | 3,710 ₹ | High price | 6,390 ₹ | PEG Ratio | 0.87 | Debt to equity | 0.01 |
| 52w Index | 51.8 % | Qtr Profit Var | 19.6 % | EPS | 247 ₹ | Industry PE | 31.2 |
📉 Chart Patterns & Trend: HEROMOTOCO is trading below both its 50 DMA (₹5,305) and 200 DMA (₹5,288), reflecting short-term weakness. Current price (₹5,099) is near support at ₹5,000–₹5,050, suggesting vulnerability but also potential for a rebound if support holds.
📊 Momentum Indicators: RSI at 45.4 indicates neutral-to-weak momentum. MACD at -69.2 confirms bearish sentiment. Bollinger Bands show price drifting near the lower band, signaling pressure but possible mean reversion.
📈 Volume Trends: Current volume (4.9 lakh) is slightly below average weekly volume (5.4 lakh), reflecting reduced participation and lack of strong buying interest.
🎯 Entry Zone: ₹5,050 – ₹5,100 (near support, favorable risk-reward).
🚪 Exit Zone: ₹5,280 – ₹5,320 (near 50 DMA resistance; profit-taking zone if rebound occurs).
🔎 Status: The stock is consolidating near support but remains in a mild downtrend. Sustained recovery requires price action above ₹5,300–₹5,350.
Positive
- Strong ROE (23.8%) and ROCE (31.5%) highlight operational efficiency.
- Dividend yield of 3.24% provides steady income.
- Quarterly PAT growth of 19.6% shows earnings momentum.
- EPS of ₹247 supports long-term earnings visibility.
Limitation
- Stock trading below both 50 & 200 DMA indicates technical weakness.
- MACD negative, suggesting short-term bearish trend.
- Industry PE (31.2) is higher than company PE (20.2), limiting valuation comfort but showing sector premium.
Company Negative News
- DII holdings decreased (-1.59%), showing reduced domestic institutional support.
Company Positive News
- FII holdings increased (+1.72%), reflecting foreign investor confidence.
- Quarterly PAT improved from ₹1,393 Cr to ₹1,439 Cr.
Industry
- Automobile sector facing cyclical demand pressures but supported by rural recovery.
- Industry PE at 31.2 highlights premium valuations compared to Hero MotoCorp’s P/E of 20.2.
Conclusion
⚠️ HEROMOTOCO is technically weak, trading below key moving averages with bearish momentum. Fundamentals remain strong, supported by high ROE, ROCE, and dividend yield. Short-term traders may consider entry near ₹5,050–₹5,100 with exits around ₹5,280–₹5,320. Long-term investors should wait for confirmation above ₹5,350 before fresh accumulation.
Would you like me to extend this into a sector overlay comparison with Bajaj Auto, TVS Motor, and Eicher Motors to benchmark Hero MotoCorp’s relative strength?