LUPIN - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.7

📈 Optimal Entry Price: ₹1,950–₹1,970 (near 50 & 200 DMA)

📉 Exit Strategy (if holding): ₹2,350–₹2,400 (resistance zone)

🔷 Positive

• 📊 Strong quarterly growth: PAT rose from ₹1,291 Cr. to ₹2,128 Cr. (QoQ growth of 65%).
• 📉 PEG ratio of 0.10: Indicates undervaluation relative to earnings growth.
• 💹 High ROCE (21.9%) and ROE (17.8%) reflect efficient capital deployment.
• 📈 MACD positive (2.71) and RSI at 59.9 suggest bullish momentum without being overbought.
• 📉 Low debt-to-equity (0.01): Strong balance sheet with minimal leverage.
• 📈 Trading above DMA 50 & 200: Indicates technical strength and trend continuation.

⚠️ Limitation

• 📉 FII holding dropped by 0.75%: May reflect cautious foreign sentiment.
• 💸 Low dividend yield (0.60%): Not attractive for income-focused investors.
• 📊 Stock P/E (17.3) is below industry average (33.1): Could signal undervaluation or market skepticism.

📉 Company Negative News

• 📰 Some analysts express concern over sustainability of recent earnings spike and valuation re-rating.

📈 Company Positive News

• 🧠 Lupin’s LYFE platform received CDSCO Class C approval, marking a major digital health milestone.
• 📈 Brokerages like Goldman Sachs have raised target prices post strong Q3 results.

🏥 Industry

• 💊 Pharma sector remains resilient, with growing demand for chronic care and digital therapeutics.
• 📈 Industry P/E of 33.1 suggests Lupin has room for valuation expansion if growth sustains.

🧾 Conclusion

• ✅ Lupin is a strong swing trade candidate due to its earnings momentum, technical strength, and low PEG ratio.
• 📌 Entry near ₹1,950–₹1,970 offers a favorable risk-reward setup.
• 🚪 If already holding, consider exiting near ₹2,350–₹2,400, aligning with resistance and recent highs.

Would you like me to compare Lupin with another pharma stock to help refine your swing trade strategy?