MOTHERSON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | MOTHERSON | Market Cap | 1,27,930 Cr. | Current Price | 121 ₹ | High / Low | 136 ₹ |
| Stock P/E | 65.2 | Book Value | 36.2 ₹ | Dividend Yield | 0.47 % | ROCE | 5.16 % |
| ROE | 4.33 % | Face Value | 1.00 ₹ | DMA 50 | 120 ₹ | DMA 200 | 114 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.49 % | PAT Qtr | 230 Cr. | PAT Prev Qtr | 732 Cr. |
| RSI | 49.9 | MACD | 2.10 | Volume | 1,79,75,206 | Avg Vol 1Wk | 1,55,45,761 |
| Low price | 86.9 ₹ | High price | 136 ₹ | PEG Ratio | 8.51 | Debt to equity | 0.18 |
| 52w Index | 69.6 % | Qtr Profit Var | 89.0 % | EPS | 1.86 ₹ | Industry PE | 27.3 |
📊 Chart & Indicators: MOTHERSON is trading at ₹121, slightly above its 50 DMA (₹120) and 200 DMA (₹114), showing short-term bullish momentum. RSI at 49.9 indicates neutral momentum, while MACD at 2.10 confirms mild bullishness. Price is consolidating between support (~₹118–₹120) and resistance (~₹128–₹132). Volume (1.79 Cr) is above weekly average (1.55 Cr), suggesting active participation.
🎯 Entry/Exit Zones:
- Buy Zone: ₹118–₹122 (near support)
- Stop-Loss: ₹115
- Exit Levels: ₹128–₹132 (short-term resistance), ₹135–₹136 (major resistance near 52-week high)
📈 Trend Status: Consolidating with mild bullish bias; price above moving averages and positive MACD support short-term strength, but RSI neutral indicates limited momentum.
✅ Positive
- Price above both 50 DMA and 200 DMA
- MACD positive at 2.10, confirming bullish momentum
- Volume higher than weekly average, showing strong participation
- FII holdings increased (+0.70%)
- 52-week index gain of 69.6%
⚠️ Limitation
- High P/E of 65.2 vs Industry PE 27.3 → stretched valuation
- Weak ROE (4.33%) and ROCE (5.16%)
- EPS at ₹1.86 remains low
- PEG ratio at 8.51 indicates poor growth-adjusted valuation
📉 Company Negative News
- Quarterly PAT dropped sharply (₹732 Cr → ₹230 Cr)
- DII holdings reduced (-0.49%)
- Weak profitability metrics despite strong market cap
📊 Company Positive News
- Strong 52-week performance (+69.6%)
- Dividend yield at 0.47% maintained
- Low debt-to-equity ratio (0.18)
🏦 Industry
- Industry PE at 27.3, much lower than MOTHERSON
- Auto ancillary sector demand supported by global recovery
- Competition and margin pressures remain key risks
📝 Conclusion
MOTHERSON is consolidating near support with mild bullish momentum, supported by positive MACD and strong volume. However, weak fundamentals, stretched valuations, and sharp PAT decline limit upside potential. Best suited for short-term swing trades with entry near ₹118–₹122 and exit around ₹128–₹132; long-term investors should remain cautious unless profitability improves significantly.
Would you like me to also prepare a long-term fundamental investment rating (1–5) for MOTHERSON, so you can directly compare its technical momentum with its fundamental outlook?