ALKEM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | ALKEM | Market Cap | 62,686 Cr. | Current Price | 5,240 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 28.3 | Book Value | 1,143 ₹ | Dividend Yield | 0.86 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,546 ₹ | DMA 200 | 5,460 ₹ |
| Chg in FII Hold | 0.50 % | Chg in DII Hold | -0.39 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 724 Cr. |
| RSI | 36.6 | MACD | -78.8 | Volume | 85,925 | Avg Vol 1Wk | 1,24,147 |
| Low price | 4,612 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.03 | Debt to equity | 0.06 |
| 52w Index | 47.5 % | Qtr Profit Var | -3.35 % | EPS | 196 ₹ | Industry PE | 27.2 |
📊 ALKEM shows strong fundamentals but weak technicals, making it a moderately good candidate for swing trading. The RSI at 36.6 suggests the stock is approaching oversold territory, while MACD remains negative (-78.8), confirming bearish momentum. The stock is trading below both its 50 DMA (5,546 ₹) and 200 DMA (5,460 ₹), reflecting short-term weakness. However, strong ROCE (19.5%) and ROE (19.9%) highlight efficiency, and debt-to-equity is very low (0.06). PAT declined slightly (654 Cr vs. 724 Cr), but EPS remains strong at 196 ₹. Institutional activity is mixed, with FII holdings up (+0.50%) but DII holdings down (-0.39%).
💡 Optimal Entry Price: Around 5,200–5,250 ₹ (near support zone).
📈 Exit Strategy if Holding: Consider exiting near 5,540–5,560 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (19.5%) and ROE (19.9%) highlight efficient capital use.
- EPS of 196 ₹ supports earnings strength.
- Dividend yield of 0.86% adds investor appeal.
- Debt-to-equity ratio at 0.06 indicates virtually debt-free operations.
- FII holdings increased (+0.50%), showing foreign investor confidence.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- High P/E (28.3) compared to industry average (27.2).
- PEG ratio of 2.03 suggests overvaluation relative to growth.
- Quarterly PAT declined (-3.35%), raising concerns about consistency.
- Volume lower than average, limiting short-term momentum.
📉 Company Negative News
- Quarterly profit decline (654 Cr vs. 724 Cr) indicates short-term weakness.
- DII holdings decreased (-0.39%), showing reduced domestic institutional confidence.
📈 Company Positive News
- Strong fundamentals with high efficiency ratios and low debt.
- FII confidence adds stability to outlook.
🏭 Industry
- Industry P/E at 27.2 is slightly lower than ALKEM’s 28.3, suggesting peers may be better valued.
- Pharma sector remains resilient with steady demand outlook.
🔎 Conclusion
ALKEM is fundamentally strong but technically weak in the short term. Entry near 5,200–5,250 ₹ offers a favorable setup, with exit targets around 5,540–5,560 ₹. While valuations are slightly stretched, strong efficiency and sector resilience support moderate swing trading potential.