NATCOPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | NATCOPHARM | Market Cap | 15,293 Cr. | Current Price | 853 ₹ | High / Low | 1,341 ₹ |
| Stock P/E | 10.1 | Book Value | 462 ₹ | Dividend Yield | 0.70 % | ROCE | 31.8 % |
| ROE | 27.5 % | Face Value | 2.00 ₹ | DMA 50 | 865 ₹ | DMA 200 | 906 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.48 % | PAT Qtr | 501 Cr. | PAT Prev Qtr | 464 Cr. |
| RSI | 49.4 | MACD | -17.1 | Volume | 6,17,824 | Avg Vol 1Wk | 4,40,834 |
| Low price | 660 ₹ | High price | 1,341 ₹ | PEG Ratio | 0.06 | Debt to equity | 0.03 |
| 52w Index | 28.4 % | Qtr Profit Var | -24.2 % | EPS | 84.8 ₹ | Industry PE | 29.2 |
📊 NATCOPHARM presents strong potential for swing trading. The stock is currently at 853 ₹, slightly below its 50 DMA (865 ₹) and 200 DMA (906 ₹), reflecting mild short-term weakness but strong long-term support. RSI at 49.4 indicates neutral momentum, while MACD at -17.1 shows bearish undertone. Fundamentals are robust with ROCE at 31.8%, ROE at 27.5%, and EPS at 84.8 ₹. Attractive valuation (P/E 10.1 vs industry 29.2) and an exceptionally low PEG ratio (0.06) highlight growth potential. Debt-to-equity at 0.03 ensures financial stability, though quarterly profit variation (-24.2%) raises caution.
✅ Optimal Entry Price: 840–855 ₹ (near support zone)
🚪 Exit Strategy (if already holding): Consider profit booking around 900–930 ₹ (near DMA resistance), or exit if price falls below 825 ₹ with strong volume.
Positive
- 💡 Strong ROCE (31.8%) and ROE (27.5%) highlight efficient capital use.
- 📈 EPS of 84.8 ₹ reflects strong earnings power.
- 📊 Attractive valuation with P/E of 10.1 vs industry 29.2.
- 💰 Debt-to-equity ratio of 0.03 ensures financial stability.
- 📦 FII holding increased by 1.07%, showing foreign investor confidence.
Limitation
- ⚠️ Trading slightly below both 50 DMA and 200 DMA, showing short-term weakness.
- 📉 MACD at -17.1 indicates bearish momentum.
- 🔻 Quarterly profit variation at -24.2% raises earnings concerns.
Company Negative News
- 📉 Decline in quarterly profit despite overall strong fundamentals.
- 🚫 DII holding decreased by -0.48%.
Company Positive News
- 📊 PAT improved sequentially (464 Cr. → 501 Cr.).
- 💰 Strong institutional support with FII inflows.
- 📈 Attractive valuation compared to peers.
Industry
- 🏭 Industry P/E at 29.2 indicates sector is moderately valued.
- 📦 Pharma sector benefits from global demand for generics and specialty drugs.
Conclusion
⚖️ NATCOPHARM is a fundamentally strong company with attractive valuations and low debt, making it a good candidate for swing trading. Entry near 840–855 ₹ offers a favorable risk-reward setup, with exit targets around 900–930 ₹. Caution advised if price breaks below 825 ₹, as momentum could weaken.