ALKEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | ALKEM | Market Cap | 63,901 Cr. | Current Price | 5,348 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 28.9 | Book Value | 1,143 ₹ | Dividend Yield | 0.84 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,452 ₹ | DMA 200 | 5,444 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | -0.15 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 724 Cr. |
| RSI | 47.0 | MACD | -7.46 | Volume | 1,06,062 | Avg Vol 1Wk | 1,14,286 |
| Low price | 4,716 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.07 | Debt to equity | 0.06 |
| 52w Index | 51.9 % | Qtr Profit Var | -3.35 % | EPS | 196 ₹ | Industry PE | 30.2 |
Analysis: ALKEM shows strong fundamentals with ROCE at 19.5% and ROE at 19.9%, both healthy levels. The current price (₹5,348) is slightly below both the 50 DMA (₹5,452) and 200 DMA (₹5,444), suggesting short-term weakness but long-term stability. RSI at 47.0 and MACD at -7.46 indicate neutral to bearish momentum. Valuation is fair with a P/E of 28.9 compared to industry 30.2, and PEG ratio of 2.07 suggests moderate growth potential. Debt-to-equity is very low (0.06), showing financial strength. Quarterly PAT declined from ₹724 Cr. to ₹654 Cr., reflecting earnings pressure, but EPS of ₹196 remains strong.
Optimal Entry Price: ₹5,250–5,350 (near current support levels).
Exit Strategy: If already holding, consider profit booking near ₹5,800–5,900. Exit if price falls below ₹5,200 with strong volume.
✅ Positive
- Strong ROCE (19.5%) and ROE (19.9%).
- Low debt-to-equity ratio (0.06), nearly debt-free.
- EPS of ₹196 shows robust earnings power.
- FII holdings increased slightly (+0.18%).
⚠️ Limitation
- Quarterly PAT declined (-3.35%), showing earnings pressure.
- MACD negative (-7.46), indicating short-term weakness.
- DII holdings decreased (-0.15%), showing reduced domestic support.
📉 Company Negative News
- No major negative news reported, but profit decline is a concern.
📈 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- Dividend yield of 0.84% adds investor appeal.
🏭 Industry
- Industry P/E at 30.2, slightly higher than company’s 28.9.
- Pharma sector remains resilient with steady demand.
🔎 Conclusion
ALKEM is a solid swing trade candidate with strong fundamentals and fair valuation. Entry near ₹5,250–5,350 offers a favorable risk-reward. Exit near ₹5,800–5,900 or below ₹5,200 ensures disciplined profit-taking.