NATCOPHARM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | NATCOPHARM | Market Cap | 16,808 Cr. | Current Price | 938 ₹ | High / Low | 1,060 ₹ |
| Stock P/E | 11.2 | Book Value | 462 ₹ | Dividend Yield | 0.64 % | ROCE | 31.8 % |
| ROE | 27.5 % | Face Value | 2.00 ₹ | DMA 50 | 920 ₹ | DMA 200 | 912 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.48 % | PAT Qtr | 107 Cr. | PAT Prev Qtr | 501 Cr. |
| RSI | 48.9 | MACD | 19.0 | Volume | 7,36,948 | Avg Vol 1Wk | 7,53,050 |
| Low price | 660 ₹ | High price | 1,060 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.03 |
| 52w Index | 69.6 % | Qtr Profit Var | -14.4 % | EPS | 83.8 ₹ | Industry PE | 27.2 |
Analysis: NATCOPHARM trades at 938 ₹, slightly above its 50 DMA (920 ₹) and 200 DMA (912 ₹), showing stable technical support. RSI at 48.9 indicates neutral momentum, while MACD (19.0) reflects mild bullishness. The P/E of 11.2 is well below the industry average (27.2), suggesting undervaluation. Fundamentals are strong with ROCE (31.8%), ROE (27.5%), and very low debt-to-equity (0.03). However, quarterly PAT dropped sharply (107 Cr. vs 501 Cr.), raising concerns. Overall, this is a reasonably good candidate for swing trading with cautious entry.
Optimal Entry Price: Around 910–930 ₹, near the DMA support zone.
Exit Strategy (if already holding): Consider exiting near 1,000–1,030 ₹ (resistance zone). Place a stop-loss around 900 ₹ to protect against downside.
✅ Positive
- Strong ROCE (31.8%) and ROE (27.5%) highlight efficiency.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- P/E of 11.2 vs industry 27.2 suggests undervaluation.
- EPS of 83.8 ₹ reflects solid earnings power.
⚠️ Limitation
- Quarterly PAT dropped significantly (501 Cr. to 107 Cr.).
- Dividend yield is modest (0.64%), limiting income appeal.
- PEG ratio of 0.07 indicates limited growth visibility despite low valuation.
📉 Company Negative News
- Quarterly profit variation (-14.4%) shows declining momentum.
- DII holdings decreased (-0.48%), reflecting reduced domestic confidence.
📈 Company Positive News
- FII holdings increased (+1.07%), showing foreign investor interest.
- Strong balance sheet with minimal debt supports long-term stability.
🏭 Industry
- Industry P/E is 27.2, making NATCOPHARM relatively undervalued.
- Pharmaceutical sector benefits from global demand but faces regulatory and pricing pressures.
🔎 Conclusion
NATCOPHARM is fundamentally strong and undervalued compared to peers, making it a fair swing trade candidate. Entry near 910–930 ₹ is safer, with exit around 1,000–1,030 ₹. Stop-loss at 900 ₹ is recommended. While short-term profit decline is a concern, strong efficiency and low debt support potential upside.