AJANTPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | AJANTPHARM | Market Cap | 35,460 Cr. | Current Price | 2,837 ₹ | High / Low | 3,021 ₹ |
| Stock P/E | 37.6 | Book Value | 330 ₹ | Dividend Yield | 0.98 % | ROCE | 33.0 % |
| ROE | 25.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,705 ₹ | DMA 200 | 2,635 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.68 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 250 Cr. |
| RSI | 58.2 | MACD | 27.1 | Volume | 1,35,278 | Avg Vol 1Wk | 1,10,218 |
| Low price | 2,022 ₹ | High price | 3,021 ₹ | PEG Ratio | 4.74 | Debt to equity | 0.01 |
| 52w Index | 81.6 % | Qtr Profit Var | -2.94 % | EPS | 75.5 ₹ | Industry PE | 29.1 |
📊 AJANTPHARM shows strong potential for swing trading. The RSI at 58.2 indicates healthy momentum without being overbought, while MACD at 27.1 supports bullish sentiment. The stock is trading above both 50 DMA (2,705 ₹) and 200 DMA (2,635 ₹), confirming an uptrend. Optimal entry would be near 2,750–2,780 ₹ on minor pullbacks. If already holding, consider exiting around 3,000–3,020 ₹, close to the recent high, unless momentum continues to strengthen.
✅ Positive
- Strong ROCE (33.0%) and ROE (25.7%) reflect excellent capital efficiency.
- Debt-to-equity ratio of 0.01 indicates virtually debt-free status.
- Consistent dividend yield of 0.98% adds investor confidence.
- Stock trading above both 50 DMA and 200 DMA shows bullish trend continuation.
- 52-week performance at +81.6% highlights strong market momentum.
⚠️ Limitation
- High P/E ratio of 37.6 compared to industry PE of 29.1 suggests overvaluation.
- PEG ratio of 4.74 indicates expensive valuation relative to growth.
- Quarterly profit declined slightly (-2.94%), showing near-term earnings pressure.
- FII holdings decreased by -0.56%, reflecting reduced foreign investor interest.
📉 Company Negative News
- Minor decline in quarterly PAT (250 Cr. → 245 Cr.).
- Reduction in FII holdings may weigh on sentiment.
📈 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- DII holdings increased by 0.68%, showing domestic institutional support.
- Healthy trading volume above 1-week average indicates active participation.
🏭 Industry
- Industry PE at 29.1 is lower than AJANTPHARM’s 37.6, suggesting premium valuation.
- Pharmaceutical sector remains resilient with steady demand and growth opportunities.
🔎 Conclusion
AJANTPHARM is a strong swing trade candidate with bullish technicals and robust fundamentals. Entry near 2,750–2,780 ₹ offers a favorable setup. Exit should be considered around 3,000–3,020 ₹ unless momentum continues. Traders should monitor valuation risks and institutional activity while riding the trend.