⚠ 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: 3.3
| Stock Code | MOTHERSON | Market Cap | 1,43,594 Cr. | Current Price | 136 ₹ | High / Low | 139 ₹ |
| Stock P/E | 79.8 | Book Value | 36.3 ₹ | Dividend Yield | 0.42 % | ROCE | 5.22 % |
| ROE | 4.75 % | Face Value | 1.00 ₹ | DMA 50 | 124 ₹ | DMA 200 | 116 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.49 % | PAT Qtr | 483 Cr. | PAT Prev Qtr | 230 Cr. |
| RSI | 63.6 | MACD | 3.37 | Volume | 3,68,81,621 | Avg Vol 1Wk | 4,25,19,560 |
| Low price | 89.7 ₹ | High price | 139 ₹ | PEG Ratio | 2.50 | Debt to equity | 0.22 |
| 52w Index | 94.1 % | Qtr Profit Var | -25.2 % | EPS | 1.70 ₹ | Industry PE | 27.0 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹136) is above both 50 DMA (₹124) and 200 DMA (₹116), confirming bullish momentum.
- RSI: At 63.6, the stock is moderately strong, close to overbought territory.
- MACD: Positive (3.37), indicating bullish momentum continuation.
- Bollinger Bands: Price is near the upper band, suggesting strong buying pressure but risk of short-term pullback.
- Volume Trends: Current volume (3,68,81,621) is below 1-week average (4,25,19,560), showing slightly weaker participation.
📊 Momentum & Signals
- Short-term momentum: Positive, supported by MACD and price above moving averages.
- Support Zone: ₹130 – ₹134 (near-term support).
- Resistance Zone: ₹138 – ₹140 (recent high and psychological barrier).
- Entry Zone: ₹132 – ₹136 (near support, bullish bias).
- Exit Zone: ₹138 – ₹140 (resistance levels).
📉 Trend Status
The stock is currently in an uptrend with bullish signals from MACD and price above moving averages. A breakout above ₹140 could extend the rally, while failure to hold ₹134 may trigger consolidation.
✅ Positive
- Strong 52-week performance (94.1% index gain).
- Low debt-to-equity ratio (0.22), showing financial stability.
- PAT improved significantly (₹483 Cr vs ₹230 Cr previous quarter).
⚠️ Limitation
- High P/E ratio (79.8) compared to industry average (27.0), making valuation expensive.
- Weak ROE (4.75%) and ROCE (5.22%), showing poor efficiency.
- EPS at ₹1.70 is modest relative to valuation.
📰 Company Negative News
- DII holding decreased (-0.49%), showing reduced domestic institutional confidence.
- Quarterly profit variation (-25.2%) indicates earnings volatility.
🌟 Company Positive News
- FII holding increased (+0.70%), reflecting foreign investor support.
- Dividend yield of 0.42% provides some income stability.
🏦 Industry
- Industry PE at 27.0, much lower than MOTHERSON’s 79.8, suggesting peers are cheaper.
- Auto components sector continues to benefit from global demand recovery and EV adoption trends.
📌 Conclusion
MOTHERSON is in a bullish uptrend with strong technical signals but stretched valuations. Entry near ₹132 – ₹136 with exit around ₹138 – ₹140 is optimal for short-term traders. Long-term investors should weigh growth potential against weak efficiency metrics and high P/E ratio.