Investment Opportunity in Hero Motocorp Limited
Hero MotoCorp Ltd. is the world’s largest two wheelers manufacture company, based in India. Formerly this company was known as Hero Honda Motors Ltd. In 2001, company had achieved the coveted position of being the largest two-wheeler company in India. In terms of unit volume sales in a calendar year this company becomes 'World No.1' Two-wheeler Company.
Now we will discuss about technical analysis of this scrip. Why I am bullish on this stock.
This company stock price is running on 3272.85 . On the trading date of 3rd march 2017, it has crossed ATR 14-2 and also above pivot level, running to Resistance 1 level.
Previous month high is 3319. If we check momentum of this scrip it will cross this price within few days.
On 9/2/2017 stock had made high of 3319, and started journey to going down and made low of 3049. After that it had started upside move. Yesterday it had given closing above 150 days moving average.
If we check long term chart, monthly candle of this scrip, this scrip has started down trend from month of September from high of 3740. From that place it had started went down and made low of 2849.5. It had take support of ATR 142 and start slow move of upside.
If we think for long term investment this scrip price might be go till 3740, which is 52 week high. If it sustained above this price than long uptrend rally will be started.
If you are short term investor this will be a great opportunity for you to entre in this scrip now. Indicators like MACD & ADX are indicating positive sign for entry. MACD is more than Zero and also above signal line. ADX is more than MDI, PDI is also more than MDI.
This Company is virtually debt free. Company has a good return on equity (ROE) track record of 3 Years ROE is 38.68%. Company has maintaining healthy dividend payout of 51.59%. All things about this company is good only cons is Promoter’s stake is decreased, their holding is low 34.63%.
Above all things are fundamentals of this company, which are very strong. On the basis of Technical analysis and fundamental this company can give us good returns in long run.
For long term investment this company, can give u good returns.
- Anand Singh Gaur
- Sunil Kothari