If you are looking for the best stocks for swing trading this week 7 then this article is for you. According to our research, the stocks we found are Eicher Motors Ltd. and Finolex Cable Ltd.
| Eicher Motors Ltd. | Finolex Cables Ltd. |
| By utilizing our Swing Trading Strategies, we believe that Eicher Motors Ltd. can rise to 24% approx from the current price in the upcoming days. | By utilizing our Swing Trading Strategies, we believe that Finolex Cables Ltd. 20% approx from the current price in the upcoming days. |
Stocks for Swing trading –
Best stocks for swing trading this week 6
Best Stocks For Swing Trading This Week – 5
Important key elements about both stocks :
| Eicher Motors Ltd. | Finolex Cables Ltd. |
| Eicher Motors Ltd. has recently posted the highest-ever quarterly results with Sales of 4179 cr. at a Sales growth of 11% from last quarter and Net profit increased by 25% to 996Cr. | Finolex Cables Ltd. has posted quarterly results with a Revenue growth of 06% to 1222 Cr. and a Net Profit of 128Cr, with a downfall of 5%. The little bit of downfall in net profits in one quarter is normal because the overall net profit growth every year is positive. |
Eicher Motors Ltd. and Finolex Cables Ltd. profits are growing regularly which is why it is simple to understand that the stock price will eventually follow the growth of the company. Because of the inflation, the expenses have been increased for both companies, but they will decrease as inflation decreases in the upcoming days.
The price can go down further after the buying as per the market scenario, but that is temporary. We have to believe in the company’s business.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Eicher Motors Ltd.:-
Eicher Motors Limited, founded in 1982, is the Eicher Group’s listed firm in India, a major player in the Indian vehicle industry, and the global leader in middleweight motorcycles.
Eicher formed a joint venture with Sweden’s AB Volvo to form Volvo Eicher Commercial Vehicles Limited (VECV). VECV operates trucks and buses, sells auto parts, and offers technical consultancy services.
Key Points –
1. Iconic Brand
It owns the legendary Royal Enfield brand, focusing on mid-sized bikes (250-750cc). Royal Enfield’s brands include Classic, Bullet, and Himalayan. It is available in over 60 countries throughout the globe. It also sells protective riding gear, urban casual clothing, and motorcycle accessories and components.
In FY20, it released two BS-VI-compliant motorcycles, the Classic 350 BS-VI and the Himalayan BS-VI.
2. Commercial Vehicle segment
The VECV section manufactures light and medium-duty vehicles, heavy-duty trucks and buses, engineering components, and aggregates. It also manufactures medium-duty base engines for the Volvo Group’s Euro VI specifications.
It released India’s first BS-VI-compliant CV series in FY20.
3. Manufacturing Facility
It has three manufacturing facilities near Chennai.
The VECV manufacturing factory in Pithampur, Madhya Pradesh, produces medium-duty five- and eight-liter engines.
Its VE PowerTrain factory is the first engine plant in India to build a Euro-6 compatible base engine.
4. Capacity expansion
Its Pithampur Plant can generate about 90,000 trucks annually.
Phase 1 capacity increase for the Bhopal factory is set at 40,000 vehicles annually.
With a scalable capacity of up to 100,000 engines, its VE PowerTrain factory currently has 50,000 engines.
5. Distribution
It operates in 1,550 cities with 1889 dealers (900 studio shops and 989 stores). In the previous five years, its network has tripled in size. In FY21, they want to open 600 more shops.
For its Bus Segment, it has 27 distributors and 308 dealers.
In FY19–20, it opened 35 new locations in foreign countries, bringing its total number of touchpoints to over 660, including 585 multi-brand shops and 77 special boutiques.
6. Product-wise Revenue
Two-wheelers: 88% of Revenue
Spare parts and other components: 7% of Revenue
Accessories and other allied products: 5% of Revenue
Fundamentals of Eicher Motors Ltd.: –
( For a better understanding of fundamentals you can visit screener.in )
| Eicher Motors Ltd. Fundamentals |
|---|
| Market Cap – ₹ 1,02,558 Cr. |
| Stock P/E – 26.7 |
| Current Price – ₹ 3,746 |
| High / Low – ₹ 4,202 / 2,836 |
| Book Value – ₹ 582 |
| Debt to Equity –0.03 |
| Return on Equity – 10 Years – 22% |
| Return on Capital Employed – 10 years – 33.1 % which is very good. |
| Compounded Profit Growth – 10 years –25% |
| Stock Price CAGR – 10 years – 21% which is excellent. |
| Institutions Shareholding Holding – 40% which is very good. |
As you can see above, the company fundamentally looks good. After careful analysis, we firmly believe this is one of the best stocks for swing trading this week 7 among the two we suggested above.
Technical Analysis of Eicher Motors Ltd: –
As you can see from the chart below, The Stock has made a beautiful Cup with a Handle pattern. It started moving towards the target but lately because of the overall market condition it retraced at the buying level.
( For a better understanding of charts you can visit tradingview.com )
- Entry – 3750 or below
- Exit – 4623
The company is posting good profits as per the scenario As the market conditions approve it will again start its journey towards the target. So it’s a great opportunity for us to be a part of the profitable journey.
As we discussed at the start the price can go further down after the buying or move upwards depending on the market conditions. That’s how the Stock market works. The market doesn’t move continuously upwards or downwards, It always moves in a zigzag format. The price of this kind of leader companies can go down but can’t stay down, So be patient and believe in the business and the company. This stock is the best fit to buy as per our tried and tested Cup with handle Strategy. It can show an upside move of 24% to the target of 4623 approx. soon.
This is why we believe that Eicher Motors Ltd. is one of the best stocks for swing trading this week 7 of the two that we mentioned in the introduction.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Finolex Cables Ltd:-
One of India’s top producers of telecom and power cables is Finolex Cables Limited. As one of the nation’s largest and oldest wire and cable firms, Finolex has been in business for more than 50 years and has managed to hold its dominant position.
Finolex began producing household appliances and Fast-Moving Electrical Goods (FMEG) in addition to a broad range of wires and cables. The company has built a solid reputation and has been the go-to source for institutional and retail electrical solutions in India.
Key Points –
1. Product Portfolio
In the FMEG, wires, cables, and home appliance sections, the firm offers over 50,000 SKUs.
2. Manufacturing plants
The firm owned and ran 28 depots in addition to 5 production locations as of Q1 FY-24. As part of its backward integration plan, it also produces its primary raw materials, which include PVC compound and copper rods, optic fiber, and FRP rods. In FY-23, the plant’s capacity was used 70% of the time.
3. Distribution Network
More than 175,000 merchants and 5,000 channel partners support the firm. The firm also operates eight unique “Finolex House” retail locations in Bengaluru, Ghaziabad, Ranchi, Vadodara, Raipur, Bhubaneshwar, and Secunderabad.
4. Revenue Model
Communication Cables: 13%
Copper Rods: 0.52%
Other Products: 4.5%
Electrical Cables: 82%
5. Brand Promotion
Kartik Aaryan and Kiara Advani are two celebrities with whom Finolex has partnered to promote its brands.
Fundamentals Of Finolex Cables Ltd:-
( For a better understanding of fundamentals you can visit screener.in )
| Finolex Cables Ltd. Fundamentals |
|---|
| Market Cap – ₹ 13,427 Cr. |
| Stock P/E -24.0 |
| Current Price – ₹ 878 |
| High / Low – ₹ 1,219 / 762 |
| Book Value – ₹ 256 |
| Debt to Equity –0.00 |
| Return on Equity – 10 Years – 15% |
| Return on Capital Employed – 10 years – 20.0 % |
| Compounded Profit Growth – 10 years –12% |
| Stock Price CAGR – 10 years – 24% which is excellent. |
| Institutions Shareholding Holding – 26% which is very good. |
Technical Analysis of Finolex Cables Ltd: –
As you can see from the chart below, The Stock has made a beautiful Cup with a Handle pattern. It started moving towards the target but lately because of the overall market condition it retraced below the buying level.
( For a better understanding of charts you can visit tradingview.com )
- Entry – 1000 or below
- Exit – 1279
As we discussed in the eicher motor technical analysis the stock price can go down after the buying. This is a perfect example of that. The Stock price moved downwards that doesn’t mean the company has gone bad. It’s just because of the overall market scenario. If we think the company is now bad because of the downward movement of the stock price we are wrong. We have to remove this kind of thought process from our minds.
If we understand the company’s business and balance sheet first only then we can have the conviction about the stock price that will eventually hit our target. The Finolex Cables profits are growing regularly, and the results are good. All these strong fundamentals will support the price to move upward. Finolex Cables Ltd. can show an upside move of 20% to the Target of 1279 soon.
Hence, we strongly say that Finolex Cables Ltd. is one of the best stocks for swing trading this week 7
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Conclusion –
In this post, we went over every important factor that made Eicher Motors Ltd. and Finolex Cables Ltd. the best stocks for swing trading this week 7. From a technical and fundamental perspective, both stocks are appealing, and there’s a good probability they’ll rise. Therefore, traders should take advantage of this fantastic chance to trade.
