LUPIN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.2
| Stock Code | LUPIN | Market Cap | 1,07,452 Cr. | Current Price | 2,349 ₹ | High / Low | 2,381 ₹ |
| Stock P/E | 19.4 | Book Value | 596 ₹ | Dividend Yield | 0.51 % | ROCE | 21.9 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 2,287 ₹ | DMA 200 | 2,148 ₹ |
| Chg in FII Hold | 0.20 % | Chg in DII Hold | -0.26 % | PAT Qtr | 1,241 Cr. | PAT Prev Qtr | 869 Cr. |
| RSI | 57.2 | MACD | 6.98 | Volume | 13,36,484 | Avg Vol 1Wk | 11,29,112 |
| Low price | 1,837 ₹ | High price | 2,381 ₹ | PEG Ratio | 0.11 | Debt to equity | 0.04 |
| 52w Index | 94.1 % | Qtr Profit Var | 18.6 % | EPS | 120 ₹ | Industry PE | 30.2 |
Analysis: Lupin is trading at 2,349 ₹, close to its 52-week high of 2,381 ₹, showing strong momentum. RSI at 57.2 and MACD at 6.98 indicate steady bullish strength without being overbought. The stock is above both its 50 DMA (2,287 ₹) and 200 DMA (2,148 ₹), confirming an uptrend. Valuation is attractive with a P/E of 19.4 compared to the industry average of 30.2, supported by strong fundamentals: ROCE at 21.9%, ROE at 17.8%, and quarterly PAT growth (1,241 Cr vs 869 Cr). EPS at 120 ₹ and PEG ratio of 0.11 highlight excellent growth potential relative to valuation. Debt levels are negligible, adding financial stability. Slight decline in DII holdings (-0.26%) is a minor concern, but FII holdings increased (+0.20%), showing foreign investor confidence.
Optimal Entry Price: Around 2,280–2,300 ₹ (near 50 DMA support zone).
Exit Strategy: If already holding, consider exiting near 2,370–2,380 ₹ (recent high resistance zone) or if RSI approaches 70. A stop-loss can be placed around 2,250 ₹ to manage downside risk.
✅ Positive
- Quarterly PAT growth (1,241 Cr vs 869 Cr).
- EPS at 120 ₹, reflecting strong earnings power.
- Attractive valuation with P/E of 19.4 vs industry average of 30.2.
- Healthy ROCE (21.9%) and ROE (17.8%).
- PEG ratio at 0.11, indicating undervaluation relative to growth.
- Debt-to-equity ratio at 0.04, showing financial stability.
⚠️ Limitation
- Stock trading very close to 52-week high, limiting immediate upside.
- DII holdings decreased (-0.26%).
- Volume slightly above average but not strongly surging.
📉 Company Negative News
- DII holdings declined (-0.26%).
- Stock near resistance zone, risk of short-term profit booking.
📈 Company Positive News
- Quarterly profit growth of 18.6% variation.
- FII holdings increased (+0.20%).
- Dividend yield at 0.51%, providing income stability.
🏭 Industry
- Industry P/E at 30.2, higher than Lupin’s 19.4, highlighting undervaluation.
- Pharmaceutical sector remains resilient with steady demand and global expansion opportunities.
🔎 Conclusion
Lupin is a fundamentally strong and undervalued stock, making it a good candidate for swing trading. Entry near 2,280–2,300 ₹ is optimal, with exit around 2,370–2,380 ₹. Strong earnings, high return ratios, and attractive valuation support upside, though caution is advised near resistance levels.