CIPLA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | CIPLA | Market Cap | 1,07,104 Cr. | Current Price | 1,326 ₹ | High / Low | 1,673 ₹ |
| Stock P/E | 23.4 | Book Value | 412 ₹ | Dividend Yield | 0.98 % | ROCE | 20.1 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,433 ₹ | DMA 200 | 1,490 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.47 % | PAT Qtr | 822 Cr. | PAT Prev Qtr | 1,211 Cr. |
| RSI | 29.5 | MACD | -44.6 | Volume | 16,74,949 | Avg Vol 1Wk | 19,84,800 |
| Low price | 1,282 ₹ | High price | 1,673 ₹ | PEG Ratio | 1.28 | Debt to equity | 0.00 |
| 52w Index | 11.2 % | Qtr Profit Var | -42.9 % | EPS | 57.2 ₹ | Industry PE | 29.1 |
📊 CIPLA shows moderate potential for swing trading. The stock is trading below both 50 DMA and 200 DMA, reflecting weak technical momentum. RSI at 29.5 indicates oversold conditions, which may provide a short-term rebound opportunity. Strong fundamentals such as debt-free status, healthy ROCE, and fair valuation compared to industry PE support stability, but declining profits and negative MACD limit upside.
💡 Optimal Entry Price: Around 1,300–1,310 ₹ (near support zone, slightly above 52-week low).
📈 Exit Strategy if Holding: Consider booking profits near 1,420–1,450 ₹ (short-term resistance) or if RSI rises above 55.
✅ Positive
- ROCE at 20.1% and ROE at 16.0% indicate strong efficiency and profitability.
- Debt-to-equity ratio at 0.00 — completely debt-free.
- EPS of 57.2 ₹ supports earnings visibility.
- P/E of 23.4 is lower than industry average (29.1), suggesting fair valuation.
- DII holdings increased (+0.47%), reflecting domestic investor confidence.
⚠️ Limitation
- Current price (1,326 ₹) is below both 50 DMA (1,433 ₹) and 200 DMA (1,490 ₹), showing weak trend.
- MACD negative (-44.6), suggesting bearish momentum.
- Quarterly PAT decline (822 Cr. vs. 1,211 Cr.) shows weak earnings momentum.
- 52-week index at 11.2% indicates the stock is near its yearly low.
- Volume (16.7 lakh) lower than average weekly volume (19.8 lakh), showing reduced participation.
📉 Company Negative News
- Decline in FII holdings (-0.61%) shows reduced foreign investor confidence.
- Quarterly profit slowdown (-42.9%) raises concerns about earnings momentum.
📈 Company Positive News
- DII holdings increased, showing domestic investor support.
- Debt-free balance sheet enhances financial stability.
- RSI at 29.5 indicates oversold conditions, which may trigger a short-term rebound.
🏦 Industry
- Industry P/E at 29.1 is higher than CIPLA’s 23.4, suggesting undervaluation compared to peers.
- Pharmaceutical sector outlook remains positive, supported by global demand and healthcare expansion.
🔎 Conclusion
CIPLA earns a swing trade rating of 3.4. Entry near 1,300–1,310 ₹ offers a cautious opportunity, while exit around 1,420–1,450 ₹ is optimal. Strong fundamentals and oversold RSI provide rebound potential, but weak technicals and declining profits suggest traders should adopt a conservative approach with strict stop-losses.