⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
MOTHERSON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | MOTHERSON | Market Cap | 1,18,188 Cr. | Current Price | 112 ₹ | High / Low | 125 ₹ |
| Stock P/E | 63.8 | Book Value | 36.2 ₹ | Dividend Yield | 0.51 % | ROCE | 5.16 % |
| ROE | 4.33 % | Face Value | 1.00 ₹ | DMA 50 | 114 ₹ | DMA 200 | 107 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.59 % | PAT Qtr | 732 Cr. | PAT Prev Qtr | 355 Cr. |
| RSI | 44.6 | MACD | -1.56 | Volume | 73,88,814 | Avg Vol 1Wk | 1,24,07,013 |
| Low price | 71.5 ₹ | High price | 125 ₹ | PEG Ratio | 8.32 | Debt to equity | 0.18 |
| 52w Index | 75.8 % | Qtr Profit Var | 14.0 % | EPS | 1.76 ₹ | Industry PE | 28.0 |
📊 Technical Analysis
- Chart Patterns: Stock is trading slightly below 50 DMA (114 ₹) but above 200 DMA (107 ₹), indicating consolidation with mild bearish bias.
- Moving Averages: Current price (112 ₹) is under 50 DMA but above 200 DMA → neutral to weak setup.
- RSI: 44.6 → weak momentum, closer to oversold territory but not extreme.
- MACD: -1.56 → bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, suggesting oversold condition and possible rebound.
- Volume Trends: Current volume (73.9 lakh) below 1-week average (124 lakh), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold indicators suggest potential rebound.
- Entry Zone: 110–112 ₹ (near 200 DMA support).
- Exit Zone: 115–118 ₹ (near 50 DMA resistance).
- Trend Status: Consolidating with bearish tilt; reversal possible only if price sustains above 114 ₹.
✅ Positive
- Quarterly PAT growth from 355 Cr. to 732 Cr. (+14%).
- DII holdings increased by 0.59%, showing domestic institutional confidence.
- Low debt-to-equity ratio of 0.18 indicates financial stability.
- 52-week index performance at 75.8% shows strong relative strength compared to broader market.
⚠️ Limitation
- High P/E of 63.8 compared to industry PE of 28.0.
- EPS of 1.76 ₹ is relatively low, limiting valuation comfort.
- ROE (4.33%) and ROCE (5.16%) are weak, showing poor capital efficiency.
📉 Company Negative News
- FII holdings decreased by -0.24%, showing reduced foreign investor confidence.
- Stock trading below 50 DMA with bearish MACD signal.
📈 Company Positive News
- Quarterly profit growth (+14%) shows improving earnings trend.
- Dividend yield of 0.51% provides modest income stability.
🏭 Industry
- Industry PE at 28.0, much lower than MOTHERSON’s 63.8, suggesting sector peers may be more attractively valued.
- Auto components sector remains cyclical but supported by global demand recovery.
🔎 Conclusion
- MOTHERSON is consolidating near support levels with bearish signals from DMA and MACD.
- Short-term traders may consider entry around 110–112 ₹ with exit near 115–118 ₹.
- Long-term investors should be cautious due to high valuation and weak efficiency metrics despite strong quarterly profit growth.
Would you like me to extend this with a visual HTML support/resistance bar chart to highlight the 110–112 ₹ entry zone and 115–118 ₹ exit zone?