HONAUT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📉 HONAUT is currently consolidating with neutral momentum and weak volume, though long-term fundamentals remain solid.

📊 Technical Analysis

• Trend Status: Consolidating — price is hovering near 50-DMA and below 200-DMA, lacking clear direction.
• Moving Averages: Price ₹36,615 is slightly below 50-DMA (₹36,815) and well below 200-DMA (₹38,266), indicating short-term weakness.
• RSI (48.6): Neutral zone, suggesting indecision and lack of strong momentum.
• MACD (65.7): Positive but flattening, indicating fading bullish momentum.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (1,963) is significantly below weekly average (2,922), showing weak participation.

🎯 Entry & Exit Zones

• Support Levels: ₹36,000, ₹35,200
• Resistance Levels: ₹36,815 (50-DMA), ₹38,000, ₹39,000
• Optimal Entry: ₹36,000–₹36,200 (near support)
• Exit Target: ₹38,000–₹39,000 (resistance zone)

✅ Positive

• Strong ROCE (18.4%) and ROE (13.7%) reflect efficient capital deployment.
• Low debt-to-equity ratio (0.02) indicates financial stability.
• EPS of ₹579 and consistent profitability support long-term fundamentals.

⚠️ Limitation

• High P/E (63.3) and PEG (4.05) suggest overvaluation relative to growth.
• MACD and RSI show weakening momentum, limiting short-term upside.
• Volume is significantly below average, indicating lack of strong buying interest.

📉 Company Negative News

• Quarterly PAT declined from ₹140 Cr to ₹125 Cr, indicating margin pressure.
• DII holdings dropped by 0.16%, reflecting cautious domestic sentiment.

📈 Company Positive News

• FII holdings increased by 0.24%, showing foreign investor confidence.
• Strong brand reputation and leadership in automation and control systems.

🏭 Industry

• Industrial automation sector is growing with increased demand for smart manufacturing solutions.
• Industry P/E (35.8) is significantly lower than HONAUT’s, suggesting premium valuation.

🧾 Conclusion

• HONAUT is consolidating with neutral momentum and valuation concerns.
• Entry near ₹36,000–₹36,200 could offer value with targets around ₹38,000–₹39,000.
• Investors should monitor earnings trajectory and volume trends for confirmation of trend reversal.