AJANTPHARM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Analysis for Ajanta Pharma Ltd. 💊 (AJANTPHARM)

📊 Swing Trade Rating

Rating: 4.3

Ajanta Pharma is exhibiting a strong combination of bullish technicals and rock-solid fundamentals. While valuation is slightly stretched (PEG 4.35), it’s riding healthy momentum—making it a promising swing candidate with room to climb before facing major resistance.

✅ Strengths Supporting the Swing Setup

High Profitability: ROCE (32.4%) and ROE (24.9%) signal operational efficiency

EPS ₹74.4 & P/E 37.9: Justified by strong earnings and above-industry valuation

MACD 51.7: Strong bullish momentum in play

Above Key Averages: CMP (₹2,823) sits firmly above 50-DMA (₹2,661) and 200-DMA (₹2,660)

RSI (63.4): Bullish territory but not yet overbought—momentum intact

Low Debt (0.01): Almost debt-free, enhancing financial resilience

Consistent Earnings Growth: PAT up ₹255 Cr. vs ₹225 Cr.

Volume Climb: Trading volume exceeds weekly average—momentum confirmation

Dividend Yield (1.28%): Decent passive return alongside active setup

⚠️ Factors to Keep in Check

PEG Ratio (4.35): Stock is expensive relative to earnings growth—momentum needs to justify premium

52w Index (54.7%): Room left to reclaim yearly highs but breakout might need strong news catalyst

Flat FII/DII Holdings: No major change in institutional sentiment—neutral signal

🎯 Optimal Entry Price

Entry Zone: ₹2,775–₹2,800 (on minor dip)

Entry Conditions

RSI stays between 58–65

MACD continues positive divergence

Volume sustains above 1.2L+ on green days

Avoid entering above ₹2,850 unless there's volume-based breakout toward ₹2,900+.

💼 Exit Strategy (If Already Holding)

Initial Exit Zone: ₹2,975–₹3,050 (previous resistance band)

Stretch Target: ₹3,200–₹3,250 if breakout continues with rising RSI

Final Resistance: ₹3,486 (52-week high)

Stop Loss: ₹2,735 to preserve gains and manage risk

🧠 Final Thought

AJANTPHARM blends momentum with stability—a great profile for a disciplined swing trader. Stay nimble near resistance levels and monitor RSI for signs of overheating. This one’s worth watching as it edges toward breakout territory.

Interested in lining this up against pharma peers like IPCA Labs or Torrent Pharma to gauge sector-wide momentum? I can tee that up and help you spot relative winners. ⚗️📊

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