MOTHERSON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

Technical Analysis Report for Motherson Ltd (MOTHERSON)

• Trend Status: Consolidating near short-term support
• Moving Averages: Price slightly above 50 DMA (₹104) and 200 DMA (₹101) — neutral to mildly bullish
• RSI: 49.9 — neutral zone, no strong momentum
• MACD: Positive at 0.75 — weak bullish crossover
• Bollinger Bands: Price near mid-band — range-bound movement
• Volume: Below weekly average — low conviction in current move

Entry & Exit Zones

• Support Levels: ₹101 (DMA 200), ₹98 (trendline), ₹95 (swing low)
• Resistance Levels: ₹110 (minor resistance), ₹117 (supply zone), ₹127 (52-week high)
• Optimal Entry: ₹101–₹104 (near moving average support)
• Optimal Exit: ₹117–₹125 (near resistance zone)

Positive

• Price holding above key moving averages — technical stability
• MACD positive — potential for short-term upside
• Low debt-to-equity ratio of 0.13 — financial prudence

Limitation

• High P/E of 63.0 vs industry average of 32.6 — overvaluation risk
• PEG ratio of 8.23 — poor growth-adjusted valuation
• ROCE (5.16%) and ROE (4.33%) — below industry norms

Company Negative News

• Quarterly PAT dropped from ₹645 Cr. to ₹355 Cr. — significant decline
• FII holding reduced by 0.64% — weakening foreign sentiment

Company Positive News

• DII holding increased by 0.29% — domestic support
• Quarterly profit variation of 112% — strong YoY growth

Industry

• Auto components sector — cyclical with global exposure
• Industry P/E of 32.6 — Motherson trades at a premium

Conclusion

Motherson Ltd is currently consolidating near its short-term support levels. Technical indicators show mild bullish bias but lack strong momentum. Traders may consider entries near ₹101 with exits around ₹125, while monitoring volume trends and earnings volatility.