ASTRAZEN - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.4

📊 ASTRAZEN shows moderate potential for swing trading. The RSI at 48.2 suggests neutral momentum, while the MACD (-26.0) indicates short-term bearishness. The price is near the 50 DMA (9,112 ₹) and above the 200 DMA (8,663 ₹), reflecting medium-term strength despite current weakness. Optimal entry would be near 8,950–9,050 ₹, close to support levels. If already holding, consider exiting near 9,400–9,600 ₹, with potential extension to 9,800 ₹ if momentum improves.

✅ Positive

• 📈 Strong ROCE (33.4%) and ROE (23.6%) highlight efficient capital use.
• 💹 DII holdings increased (+0.71%), showing domestic investor confidence.
• 📊 Quarterly profit growth (+51.3%) reflects strong earnings momentum.
• 💰 Low debt-to-equity ratio (0.04) indicates financial stability.
• 💹 52-week gain of 63.6% highlights strong long-term investor interest.

⚠️ Limitation

• 📉 High P/E (98.3) compared to industry average (30.6), suggesting stretched valuation.
• 📉 PEG ratio of 2.27 signals overvaluation relative to growth.
• 📉 FII holdings decreased (-0.29%), reflecting reduced foreign investor interest.
• 📉 Dividend yield of 0.35% is modest compared to peers.

🚨 Company Negative News

Valuation remains stretched with a very high P/E and PEG ratio. Technical indicators show short-term bearishness with negative MACD. Foreign institutional investors reduced holdings, adding caution.

🌟 Company Positive News

Strong fundamentals with high ROCE and ROE, robust quarterly profit growth, and domestic institutional inflows. Low debt levels provide resilience, and long-term performance remains impressive with over 63% gain in the past year.

🏭 Industry

The pharmaceutical industry trades at an average P/E of 30.6, while ASTRAZEN trades at 98.3, making it significantly more expensive compared to peers. Sector demand remains strong, supporting medium-term opportunities despite valuation concerns.

📌 Conclusion

ASTRAZEN is a moderate candidate for swing trading. Entry near 8,950–9,050 ₹ offers a favorable risk-reward setup. Exit strategy should target 9,400–9,600 ₹, with potential upside toward 9,800 ₹ if momentum strengthens. Traders should remain cautious due to stretched valuations and weak technicals but can benefit from strong fundamentals and sector support.

I can also outline a stop-loss level around 8,800 ₹ to help manage downside risk more effectively.