CIPLA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | CIPLA | Market Cap | 1,00,124 Cr. | Current Price | 1,239 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 21.8 | Book Value | 412 ₹ | Dividend Yield | 1.05 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,355 ₹ | DMA 200 | 1,448 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.47 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 24.8 | MACD | -22.2 | Volume | 11,18,780 | Avg Vol 1Wk | 16,69,999 |
| Low price | 1,235 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.20 | Debt to equity | 0.00 |
| 52w Index | 0.87 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 27.2 |
📊 CIPLA shows moderate potential for swing trading. The RSI at 24.8 indicates oversold conditions, suggesting possible rebound, while MACD (-22.2) reflects short-term weakness. Valuation is fair with a P/E of 21.8 compared to industry PE of 27.2, and PEG ratio of 1.20 suggests balanced growth-adjusted value. Strong EPS (₹57.2), ROCE (20.1%), and ROE (16.0%) highlight efficiency. However, quarterly PAT declined sharply (₹1,211 Cr. to ₹822 Cr.), and FII holdings decreased (-0.61%), though DII inflows (+0.47%) provide some support.
💡 Optimal Entry Price: Around ₹1,220–1,230, near support levels and below the 50 DMA (₹1,355).
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,340–1,360, aligning with the 50 DMA resistance zone.
✅ Positive
- EPS of ₹57.2 supports strong earnings.
- ROCE (20.1%) and ROE (16.0%) indicate solid efficiency.
- Debt-free balance sheet reduces financial risk.
- DII holdings increased (+0.47%), showing domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined significantly (-42.9%).
- FII holdings decreased (-0.61%), showing reduced foreign investor confidence.
- Dividend yield at 1.05% is modest.
- Trading volume below weekly average, indicating weaker momentum.
📉 Company Negative News
- No major negative news reported, but sharp earnings decline and reduced FII interest remain concerns.
📈 Company Positive News
- Strong efficiency metrics with high ROCE and ROE.
- Debt-free status enhances financial stability.
- DII inflows reflect domestic confidence.
🏭 Industry
- Industry PE is 27.2, slightly higher than CIPLA’s 21.8, suggesting fair valuation.
- Pharmaceutical sector benefits from consistent demand but faces regulatory and pricing pressures.
🔎 Conclusion
CIPLA is a fair candidate for swing trading with entry near ₹1,220–1,230 and exit around ₹1,340–1,360. Strong fundamentals and debt-free status are positives, but earnings decline and weak momentum limit upside. Suitable for traders seeking rebound opportunities with moderate risk appetite.