CIPLA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | CIPLA | Market Cap | 1,07,814 Cr. | Current Price | 1,335 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 23.5 | Book Value | 412 ₹ | Dividend Yield | 0.97 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,290 ₹ | DMA 200 | 1,401 ₹ |
| Chg in FII Hold | -1.38 % | Chg in DII Hold | 1.26 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 65.7 | MACD | 14.8 | Volume | 11,40,074 | Avg Vol 1Wk | 12,89,426 |
| Low price | 1,166 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.29 | Debt to equity | 0.00 |
| 52w Index | 33.4 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 30.2 |
📊 CIPLA shows good swing trade potential. The stock is currently at 1,335 ₹, trading above DMA 50 (1,290 ₹) but below DMA 200 (1,401 ₹), suggesting short-term support with medium-term resistance. RSI at 65.7 indicates it is nearing overbought territory, while MACD is positive, confirming momentum. Volume is slightly below weekly average, showing moderate conviction.
💡 Optimal Entry Price: Around 1,300–1,320 ₹ (near DMA 50 support).
📈 Exit Strategy (if already holding): Consider profit booking near 1,380–1,400 ₹ resistance zone, or earlier if RSI crosses 70 with weakening volume.
✅ Positive
- Strong ROCE (20.1%) and ROE (16.0%) reflect efficient capital use.
- Debt-free balance sheet ensures financial stability.
- DII holdings increased (1.26%), showing domestic institutional confidence.
- PEG ratio (1.29) indicates fair valuation relative to growth.
⚠️ Limitation
- Quarterly PAT declined (822 Cr. vs 1,211 Cr.), showing earnings weakness.
- FII holdings decreased (-1.38%), reflecting reduced foreign investor confidence.
- Stock is far below its 52-week high (1,673 ₹), limiting immediate upside.
📉 Company Negative News
- Quarterly profit dropped sharply (-42.9%), raising concerns about growth momentum.
- Foreign institutional investors reduced stake, signaling cautious outlook.
📈 Company Positive News
- EPS of 57.2 ₹ supports valuation strength.
- DII support adds stability to shareholding pattern.
- Dividend yield of 0.97% provides shareholder value.
🏭 Industry
- Pharmaceutical sector benefits from consistent demand and global healthcare trends.
- Industry P/E (30.2) is higher than company’s (23.5), suggesting CIPLA is undervalued relative to peers.
🔎 Conclusion
CIPLA offers a solid swing trade opportunity with strong fundamentals and undervaluation compared to industry peers. Entry near 1,300–1,320 ₹ provides favorable risk-reward, with exit around 1,380–1,400 ₹. If already holding, monitor RSI and quarterly earnings closely, as profit weakness may limit upside momentum.