HONAUT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | HONAUT | Market Cap | 29,017 Cr. | Current Price | 32,940 ₹ | High / Low | 41,600 ₹ |
| Stock P/E | 56.2 | Book Value | 4,738 ₹ | Dividend Yield | 0.32 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 33,750 ₹ | DMA 200 | 36,282 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.46 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 125 Cr. |
| RSI | 48.4 | MACD | -411 | Volume | 1,425 | Avg Vol 1Wk | 8,214 |
| Low price | 30,590 ₹ | High price | 41,600 ₹ | PEG Ratio | 3.60 | Debt to equity | 0.02 |
| 52w Index | 21.3 % | Qtr Profit Var | 3.82 % | EPS | 584 ₹ | Industry PE | 29.2 |
📊 Chart & Trend Analysis: HONAUT is trading at ₹32,940, below both its 50 DMA (₹33,750) and 200 DMA (₹36,282), indicating short-term and medium-term weakness. RSI at 48.4 suggests neutral momentum, neither overbought nor oversold. MACD at -411 reflects strong bearish sentiment. Current volume (1,425) is significantly lower than the weekly average (8,214), showing weak participation. Bollinger Bands indicate price near mid-range, reinforcing consolidation with bearish bias.
📈 Momentum Signals: Short-term momentum is weak, with MACD strongly negative and RSI neutral. Very low trading volume further confirms lack of buying strength.
🎯 Entry Zone: ₹32,500 – ₹32,800 (near immediate support)
🚪 Exit Zone: ₹33,700 – ₹34,000 (near resistance at 50 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹32,500 could trigger reversal towards ₹31,500, while recovery above ₹34,000 may signal bullish trend resumption.
Positive
- Strong EPS of ₹584 reflects consistent profitability.
- Low debt-to-equity ratio (0.02) indicates negligible leverage risk.
- ROCE (18.4%) and ROE (13.7%) highlight efficient capital use.
- Increase in FII holding (+0.46%) signals foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- High P/E ratio (56.2) compared to industry average (29.2) suggests overvaluation.
- PEG ratio of 3.60 indicates expensive growth prospects.
- Dividend yield of 0.32% is relatively low.
- Extremely weak trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in DII holding (-0.46%) signals reduced domestic institutional support.
- Sequential PAT decline from ₹125 Cr. to ₹120 Cr. highlights earnings pressure.
Company Positive News
- Quarterly profit variation of 3.82% shows modest earnings growth.
- Increase in FII holding reflects renewed foreign investor interest.
Industry
- Industrial automation and engineering sector benefits from infrastructure and manufacturing demand.
- Industry P/E at 29.2 highlights moderate sector valuation compared to HONAUT’s premium.
Conclusion
⚖️ HONAUT is consolidating with a bearish bias. Entry near ₹32,500–₹32,800 offers cautious accumulation, while exits near ₹33,700–₹34,000 provide short-term profit booking. Strong fundamentals and low leverage support long-term holding, but high valuation, weak volume, and earnings pressure warrant cautious positioning.
Would you like me to extend this into a peer benchmarking overlay (Siemens, ABB India, Cummins India) so you can compare HONAUT’s relative strength within the industrial automation basket?