AKUMS - Swing Trade Analysis

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

Swing Trade Rating: 3.5

Akums Drugs & Pharmaceuticals Ltd. shows potential for a cautious swing trade, supported by strong fundamentals and recent profit acceleration, though technical indicators currently lack confirmation for a confident entry.

✅ Strength Factors

Earnings Strength: EPS of ₹21.5 and 458% profit growth Q/Q is exceptional.

Valuation Support: PEG ratio of 0.54 and P/E (26.6) below industry average (34.0) suggests undervaluation for growth.

Return Metrics: ROE (17.2%) and ROCE (16.2%) signal efficient capital use.

Debt-Light Structure: Debt-to-equity of 0.03 provides balance sheet strength.

DII Buying (+1.46%): Growing domestic institutional confidence.

❌ Risk Factors

Technical Weakness: RSI at 46.4 and MACD at -6.93 show indecisive momentum.

Price Below DMAs: CMP of ₹545 is below both 50-DMA (₹551) and 200-DMA (₹596), indicating a bearish bias.

Low 52w Index (18.2%): Stock remains far below its peak (₹1,176), suggesting limited sentiment.

FII Selling (-1.53%): Foreign investors continue to exit.

No Dividend: Zero yield limits passive hold incentive.

Volume Lagging: Below 1-week average, showing weak trader interest.

📥 Optimal Entry Price

Target ₹535–₹545 zone.

Entry only if

RSI crosses above 50,

MACD flattens or turns positive,

Price closes above ₹551 (50-DMA) with volume exceeding 1.3L.

🚪 Exit Plan (If Holding)

Initial Target: ₹565–₹575 (near-term resistance).

Mid-Term Target: ₹590–₹600 (approaching 200-DMA).

Stretch Exit: ₹625–₹645 if uptrend strengthens.

Stop Loss: ₹525 to protect against fresh breakdown.

🧠 Final Thought

Akums is a low-debt, earnings-rich play that’s digesting its downtrend. It’s not quite ready for a high-confidence swing, but if momentum confirms, it could present a clean bounce setup. Keep an eye on MACD-RSI alignment and volume revival.

Let me know if you’d like a comparison with other pharma midcaps or a chart overlay to track its technical bounce readiness.

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