HONAUT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | HONAUT | Market Cap | 27,431 Cr. | Current Price | 31,030 ₹ | High / Low | 41,600 ₹ |
| Stock P/E | 53.5 | Book Value | 4,738 ₹ | Dividend Yield | 0.34 % | ROCE | 18.4 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 30,614 ₹ | DMA 200 | 33,633 ₹ |
| Chg in FII Hold | 0.28 % | Chg in DII Hold | -0.25 % | PAT Qtr | 129 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 53.4 | MACD | 661 | Volume | 2,220 | Avg Vol 1Wk | 2,412 |
| Low price | 26,220 ₹ | High price | 41,600 ₹ | PEG Ratio | 3.43 | Debt to equity | 0.02 |
| 52w Index | 31.3 % | Qtr Profit Var | -2.51 % | EPS | 571 ₹ | Industry PE | 32.4 |
📉 Chart Patterns & Trend: HONAUT is trading above its 50 DMA (₹30,614) but below its 200 DMA (₹33,633), indicating short-term strength but medium-term weakness. Current price (₹31,030) is near support, suggesting consolidation with potential rebound toward ₹31,800–₹32,200.
📊 Momentum Indicators: RSI at 53.4 shows balanced momentum. MACD at 661 confirms bullish crossover. Bollinger Bands show price stabilizing near the mid-band, signaling consolidation with mild bullish bias.
📈 Volume Trends: Current volume (2,220) is slightly below average weekly volume (2,412), reflecting muted participation and limited breakout conviction.
🎯 Entry Zone: ₹30,800 – ₹31,000 (near support, favorable risk-reward).
🚪 Exit Zone: ₹33,200 – ₹33,600 (near 200 DMA resistance; profit-taking zone).
🔎 Status: The stock is consolidating near support with mild bullish signals. Sustained recovery requires price action above ₹33,600.
Positive
- EPS of ₹571 supports valuation strength.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII holdings increased (+0.28%), showing foreign investor confidence.
- Trading above 50 DMA confirms short-term bullishness.
Limitation
- High P/E (53.5) compared to industry average (32.4), suggesting overvaluation.
- PEG ratio of 3.43 signals stretched valuation relative to growth.
- Dividend yield of 0.34% is modest.
- Stock trading below 200 DMA indicates weak long-term trend.
Company Negative News
- Quarterly PAT declined slightly (-2.51%, ₹129 Cr vs ₹120 Cr).
- DII holdings decreased (-0.25%), showing reduced domestic investor confidence.
Company Positive News
- EPS remains strong, supporting valuation stability.
- Stock trading above 50 DMA confirms short-term bullish trend.
Industry
- Automation and industrial sector trades at a P/E of 32.4, lower than HONAUT’s P/E (53.5), suggesting relative overvaluation.
- Sector outlook remains steady with demand for industrial automation solutions.
Conclusion
⚠️ HONAUT is technically stable but fundamentally overvalued, making it a cautious candidate for swing trading. Entry near ₹30,800–₹31,000 is advisable on dips. For current holders, exit near ₹33,200–₹33,600 resistance is recommended to secure gains before potential correction.
Would you like me to extend this into a peer benchmarking overlay with Siemens, ABB India, and Schneider Electric to highlight HONAUT’s relative strength in the automation sector?