ALKEM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | ALKEM | Market Cap | 64,178 Cr. | Current Price | 5,374 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 27.9 | Book Value | 1,171 ₹ | Dividend Yield | 0.84 % | ROCE | 19.9 % |
| ROE | 17.5 % | Face Value | 2.00 ₹ | DMA 50 | 5,401 ₹ | DMA 200 | 5,432 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | -0.15 % | PAT Qtr | 294 Cr. | PAT Prev Qtr | 654 Cr. |
| RSI | 50.3 | MACD | -21.8 | Volume | 87,472 | Avg Vol 1Wk | 77,725 |
| Low price | 4,716 ₹ | High price | 5,934 ₹ | PEG Ratio | 1.06 | Debt to equity | 0.04 |
| 52w Index | 54.0 % | Qtr Profit Var | 30.2 % | EPS | 191 ₹ | Industry PE | 32.5 |
ALKEM demonstrates strong fundamentals with profitability metrics (ROCE 19.9%, ROE 17.5%) and very low debt (0.04). The P/E ratio of 27.9 is below the industry average (32.5), suggesting fair valuation. EPS is robust at 191 ₹, and dividend yield of 0.84% adds investor value. However, quarterly profit dropped significantly (294 Cr. vs 654 Cr.), raising short-term concerns. Technically, RSI at 50.3 is neutral, while MACD is negative (-21.8), signaling weak momentum. The stock trades near its DMA 50 (5,401 ₹) and DMA 200 (5,432 ₹), showing consolidation.
💡 Optimal Entry Price: Around 5,250–5,300 ₹, closer to DMA 50 support.
📈 Exit Strategy: If already holding, consider exiting near 5,600–5,700 ₹ or on weakness if RSI falls below 48.
✅ Positive
- 📈 Strong ROCE (19.9%) and ROE (17.5%).
- 💰 Very low debt to equity ratio (0.04).
- 📊 EPS of 191 ₹ supports earnings strength.
- 🌍 Slight increase in FII holding (+0.18%).
- 💰 Dividend yield of 0.84% provides shareholder returns.
⚠️ Limitation
- 📉 Quarterly PAT dropped sharply (294 Cr. vs 654 Cr.).
- 📊 Neutral RSI (50.3) and negative MACD (-21.8) show weak momentum.
- 📉 Decline in DII holding (-0.15%).
- 📊 Trading near DMA levels, indicating consolidation rather than breakout.
📰 Company Negative News
- ⚠️ Quarterly profit fell by more than 50% compared to the previous quarter.
🌟 Company Positive News
- 🚀 Strong fundamentals with consistent profitability.
- 📊 EPS growth remains robust despite quarterly dip.
- 💰 Dividend payout continues, enhancing investor confidence.
🏭 Industry
- 📈 Industry P/E at 32.5, higher than company’s 27.9, showing ALKEM trades at a discount.
- 🌍 Pharma industry outlook remains favorable with long-term growth potential.
📌 Conclusion
ALKEM is a moderately strong candidate for swing trading, supported by fair valuation and strong fundamentals. Entry is safer around 5,250–5,300 ₹ near DMA 50. If already holding, exit near 5,600–5,700 ₹ to secure gains. Short-term traders should monitor quarterly earnings and MACD trends for confirmation of sustained momentum.