MOTHERSON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.1

📈 Chart & Trend Analysis:

MOTHERSON is trading at ₹121, above both its 50 DMA (₹112) and 200 DMA (₹104), confirming a strong bullish trend. RSI at 55.9 indicates balanced momentum, not overbought. MACD at 2.67 is positive, supporting continued upward momentum. Price has touched its 52-week high (₹121), suggesting strong resistance at current levels. Bollinger Bands show price near the upper band, signaling possible short-term consolidation. Volume (1.52 Cr) is significantly higher than the weekly average (99 lakh), confirming strong buying interest.

🔑 Momentum Signals:

- RSI near 56 shows healthy momentum with room for upside.

- MACD positive crossover supports bullish continuation.

- Price above both DMAs confirms trend strength.

- Strong volume indicates accumulation and breakout potential.

🎯 Entry & Exit Zones:

- Support: ₹112 – ₹115 (near 50 DMA).

- Resistance: ₹121 – ₹125 (recent high zone).

- Optimal Entry: ₹115 – ₹118 range on dips.

- Exit/Profit Booking: ₹121 – ₹125 unless breakout occurs.

📊 Trend Status:

The stock is trending upward with strong bullish signals. A breakout above ₹121–₹125 could lead to further upside, while consolidation may occur near highs.

Positive

• Price trading above both 50 DMA and 200 DMA.
• Quarterly PAT surged to ₹732 Cr from ₹355 Cr, showing strong growth.
• Low debt-to-equity ratio (0.18) ensures financial stability.
• Stock trading at 99% of its 52-week high, reflecting strong momentum.

Limitation

• High P/E ratio (68.8) compared to industry average (30.0).
• PEG ratio at 8.99 indicates expensive valuation relative to growth.
• ROCE (5.16%) and ROE (4.33%) are modest, showing limited efficiency.
• EPS at ₹1.76 is low relative to valuation.

Company Negative News

• FII holdings reduced (-0.64%), showing declining foreign investor confidence.
• Valuation stretched compared to peers, limiting upside potential.

Company Positive News

• Quarterly PAT more than doubled, reflecting strong operational performance.
• DII holdings increased (+0.29%), showing domestic investor confidence.
• Dividend yield at 0.48% provides modest income return.

Industry

• Industry P/E at 30.0, MOTHERSON trades at a premium valuation.
• Auto components sector showing cyclical recovery with demand growth.
• Peers trade at lower multiples, MOTHERSON commands premium due to scale and growth visibility.

Conclusion

🚀 MOTHERSON is in a bullish trend with strong technical signals. Entry near ₹115–₹118 offers favorable risk-reward, while resistance at ₹121–₹125 is the key breakout zone. Strong profit growth and volume support upside potential, but stretched valuations warrant cautious positioning near highs.