AJANTPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | AJANTPHARM | Market Cap | 36,791 Cr. | Current Price | 2,944 ₹ | High / Low | 3,228 ₹ |
| Stock P/E | 39.0 | Book Value | 330 ₹ | Dividend Yield | 0.95 % | ROCE | 33.0 % |
| ROE | 25.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,893 ₹ | DMA 200 | 2,720 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.68 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 250 Cr. |
| RSI | 48.8 | MACD | 36.2 | Volume | 99,549 | Avg Vol 1Wk | 1,63,802 |
| Low price | 2,022 ₹ | High price | 3,228 ₹ | PEG Ratio | 4.91 | Debt to equity | 0.01 |
| 52w Index | 76.4 % | Qtr Profit Var | -2.94 % | EPS | 75.5 ₹ | Industry PE | 27.2 |
📊 AJANTPHARM shows strong fundamentals and moderate technical strength, making it a good candidate for swing trading. The RSI at 48.8 indicates neutral momentum, while MACD is positive (36.2), suggesting bullish signals. The stock is trading above its 200 DMA (2,720 ₹) and slightly above the 50 DMA (2,893 ₹), reflecting stability. Strong ROCE (33%) and ROE (25.7%) highlight efficiency, while debt-to-equity is negligible (0.01). However, valuation is stretched with a P/E of 39 vs. industry 27.2 and PEG ratio of 4.91. Quarterly PAT dipped slightly (245 Cr vs. 250 Cr), but overall fundamentals remain robust.
💡 Optimal Entry Price: Around 2,900–2,950 ₹ (near 50 DMA support).
📈 Exit Strategy if Holding: Consider exiting near 3,200–3,230 ₹ (recent high resistance) unless momentum continues strongly.
✅ Positive
- Strong ROCE (33%) and ROE (25.7%) show excellent capital efficiency.
- Debt-to-equity ratio at 0.01 indicates virtually debt-free operations.
- EPS of 75.5 ₹ supports earnings strength.
- Stock trading above 200 DMA reflects long-term bullish trend.
⚠️ Limitation
- High P/E (39) compared to industry average (27.2).
- PEG ratio of 4.91 suggests overvaluation relative to growth.
- Quarterly PAT declined slightly (-2.94%).
- Volume lower than average, limiting short-term momentum.
📉 Company Negative News
- Minor decline in FII holdings (-0.56%) indicates reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.68%), showing domestic institutional support.
- Strong fundamentals with consistent profitability and high efficiency ratios.
🏭 Industry
- Industry P/E at 27.2 is lower than AJANTPHARM’s 39, suggesting sector peers may be better valued.
- Pharma sector remains resilient with steady demand outlook.
🔎 Conclusion
AJANTPHARM is fundamentally strong and technically stable, making it a good swing trade candidate. Entry near 2,900–2,950 ₹ offers a favorable setup, with exit targets around 3,200–3,230 ₹. While valuations are stretched, efficiency and sector resilience support short-term bullish potential.