MOTHERSON trade ideas
Nice breakout.
Stock has recently given a breakout from parallel channel. After the breakout we see that volume is also increase. And Leading and lagging both indictors shows crossover. And if we see the past performance stock as created double bottom. As per the wave theory this is the beginning of wave 3. After seeing all the points, stock may reach around 130. A perfect stock to have in portfolio.
MOTHERSON Get it Cheap
Company has reduced debt.
Company has been maintaining a healthy dividend payout of 57.7%
Tax rate seems low
Company has a low return on equity of 4.45% over last 3 years.
Earnings include an other income of Rs.505 Cr.
Market Cap ₹ 66,213 Cr.
Current Price ₹ 97.6
High / Low ₹ 104 / 61.8
Stock P/E 76.2
Book Value ₹ 46.4
Dividend Yield 0.67 %
ROCE 2.86 %
ROE 2.47 %
Face Value ₹ 1.00
Samvrdhana Motherson International, can be a choice rational.Samvrdhana Motherson International Ltd. CMP – 89.95
Market Capitalization Rs 60,953.9Cr
Red Flags:🟥
High Valuation (P.E. = 31.9)
Declining annual net profit
Declining cash from operations annual
MFs are decreasing stake
Green Flags:🟩
No debt
Zero promoter pledge
FIIs are increasing stake
Previous Happy Candles Number – 59/100
New Happy Candles Number – 52/100
X/2 Fresh Entry/ averaging / compounding after closing above 93
Final Entry 95
Targets: 98 and 103
Long term target: 111 and 116
Stop loss: Closing below 85
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motherson looks like bullish " NSE:MOTHERSON Motherson is currently showing a robust support level at ₹ 95. If the stock manages to break above this trendline-level within a short period, it could potentially experience a significant upward momentum, with a possible target around ₹ 103."
This statement emphasizes the current support level at ₹ 95 and the potential price target at ₹ 103 if the stock breaks above it. Remember that investing in stocks involves risk, and it's important to conduct thorough research or consult with a financial advisor before making any trading decisions.
SAMVRDHNA MTHRSN INTL LTDOn the Technicals,
1) During 2018, stock had reached its All time high and from thereon, it started declining and took 3.6 yrs (appx) to reach ATH again (formed U shape pattern)
2) And a Distribution range from ATH was formed for another 8 - 9 months till Feb'22 just to break down
3) Following that, price started accumulating from Mar'22 to Jul'23 and had given a break out (which also seems like a contracted U shape pattern than the earlier one pt.1)
4) Though it was not a strong BO in weekly time frame but it is sustaining above the trendline for 8 weeks except couple of weeks
5) This stock could have a Stop loss of minimum 6.5% to a maximum of 9.5% and with a target more than 25% & above to reach ATH by completing U shape pattern
On the Fundamentals, (as per Moneycontrol & Screener)
1) Promoters have reduced their stake around 3% last FY but DII slightly increased their stake
2) Though company had shown considerable improvement from third quarter of last FY; however, there was a slight decrease in Net profit for previous quarter (Q1 of current FY)
3) Reserves improving and borrowings coming down
4) PE/PB higher than Industry PE/PB
I observed and highlighted some of the important points by going through technical & fundamental aspects for discussion.
Please highlight if any mistake in the above and share any important point missed out so that i would be enlightening myself in the process of analysis.
Motherson Sumi Weekly Double Bottom Pattern Bullish BreakoutKeep an eye on MothersonSumi and add it in your watchlist.
The stock is currently trading above the neckline of a weekly double bottom pattern which is a bullish reversal pattern.
If we get a weekly candle close above 84-85, price can go further high atleast till 100.
MOTHERSON - Chart AnalysisOn a Daily time frame, I see a gap down with bearish flag channel break out. There is a chance of attempt to fill the gap upto 75 If the gap holds strong then good possibility of stock going all the way to the channel low support of 61 and futher dropping to 50 levels.
Also, weekly time frame is showing lower high from previous swing and may form a lower low to 50 level which is also fib level 1.61 of the pivot. NSE:MOTHERSON
Samvardhana Motherson International Ltd now bullishSamvardhana Motherson International Ltd now bullish
Motherson has hit a breakout of the "bullish pennant"
And has also retested
first target was 86.5 approx 9% return
if cross 86.5 then we enter to choppy zone
(86 to 90)
if cross 90 then second target was 97 approx 22% return
keep your stoploss at 75 to 76
If we keep going up, your stoploss should also keep trailing along