Technical Analysis (Weekly Chart)

Technical Analysis (Weekly Chart)
📊 Setup Details:

CMP: ₹2,796.60

Price has broken out above the ₹2,348 resistance and retested it successfully this week with a strong breakout (+7.4%) 🔥.

EMA Stack (5‑9‑20) trending up, reinforcing bullish momentum.

Volume increased significantly on the breakout — a positive signal.

💹 Key Levels & Trade Plan
Level Details
Support ₹2,348 (breakout retest)
Stop Loss Weekly close below ₹2,348
Target 1 ₹3,200 (near ATH)
Target 2 ₹3,600+ (if momentum continues)

🏢 Fundamental Overview (via Screener.in)

FY25 Revenue / Profit: ₹11,561 Cr / ₹836 Cr

Valuation Metrics: P/E ~47.6, P/B ~6.9, Dividend Yield ~0.3%

Profitability: ROCE ~18.2%, ROE ~15.5%

Debt Position: Virtually debt‑free with interest coverage high and Altman Z‑score strong

Growth Profile: 3‑yr sales CAGR ~15%, profit CAGR ~21%, TTM revenue growth ~29%


Pros:

Leading global auto‑ancillary focused on alloy wheels, suspensions, brake systems
markets.ft.com
Robust profitability with low debt and strong cash flows
Secular demand from 2W/3W OEMs (including European expansion)

Cons:

Valuation considered rich (~27–42% premium to intrinsic value)
ROE moderate (~15%), in line with peers