NATCOPHARM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.5

📊 Swing Trade Analysis: NATCOPHARM (Natco Pharma Ltd.)

NATCOPHARM presents a mixed swing trade setup — fundamentally strong and undervalued, but technically weak and lacking momentum. It suits value-conscious traders who can wait for a technical reversal.

✅ Strengths

Valuation & Profitability

P/E (9.44) vs Industry PE (33.4): Deeply undervalued.

PEG Ratio (0.06): Extremely attractive relative to growth.

EPS (₹93.7), ROCE (31.8%), ROE (27.5%): Strong earnings and capital efficiency.

Debt-to-Equity (0.04): Virtually debt-free.

Quarterly PAT Growth

PAT Qtr (₹464 Cr.) vs Prev Qtr (₹428 Cr.): Sequential improvement.

⚠️ Weaknesses

MACD (-12.7): Bearish crossover — signals weak momentum.

Price below 50 DMA (₹890) and 200 DMA (₹974): Downtrend still intact.

RSI (53.6): Neutral zone, no strong trend.

FII Holding Decline (-1.97%): Foreign investors pulling back.

Volume spike (16.9L) may indicate volatility, not sustained interest.

Qtr Profit Var (-27.1%): Year-over-year decline.

🎯 Optimal Entry Price

Entry Zone: ₹860–₹875

A dip near recent support levels offers a safer entry. Wait for MACD reversal or RSI breakout above 60 for confirmation.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹950–₹980

Near 200 DMA and psychological resistance.

Stop Loss: ₹840

Below recent support and volume base.

Time Horizon: 1–2 weeks, depending on technical recovery.

This setup favors patient traders who prioritize valuation and fundamentals over short-term momentum. Let me know if you'd like help tracking this trade or scanning for stronger breakout candidates.

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