NEULANDLAB - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📊 Swing Trade Analysis: NEULANDLAB (Neuland Laboratories Ltd.)

NEULANDLAB shows strong technical momentum and solid long-term fundamentals, but its elevated valuation and sharp earnings decline make it a cautious swing trade candidate. Traders should be alert to volatility and use tight risk controls.

✅ Strengths

Technical Momentum

MACD (703): Strong bullish signal.

RSI (67.1): High momentum, nearing overbought zone.

Price above 50 DMA (₹13,972) and 200 DMA (₹12,755): Clear uptrend.

52w Index (72.3%): Trading in upper range — bullish sentiment.

Fundamentals

EPS (₹136) and Book Value (₹1,183): Strong earnings and asset base.

ROCE (18.7%) and ROE (14.8%): Healthy capital efficiency.

Debt-to-Equity (0.10): Low leverage.

DII Holding Increase (+0.60%): Positive domestic sentiment.

⚠️ Risks

Valuation

P/E (156) vs Industry PE (33.4): Extremely overvalued.

PEG Ratio (3.30): Indicates poor growth relative to valuation.

Earnings Decline

PAT Qtr (₹13.7 Cr.) vs Prev Qtr (₹27.7 Cr.): Significant drop.

Qtr Profit Var (-83.4%): Sharp year-over-year contraction.

Volume below average: May limit short-term breakout potential.

FII Holding Decline (-0.43%): Foreign investors pulling back.

Dividend Yield (0.08%): Minimal passive income.

🎯 Optimal Entry Price

Entry Zone: ₹14,800–₹15,000

A pullback near this level offers a better risk-reward setup, especially if RSI cools below 65.

🚪 Exit Strategy (If Already Holding)

Target Exit Price: ₹17,800–₹18,000

Near recent high and psychological resistance.

Stop Loss: ₹14,500

Just below 50 DMA and support zone.

Time Horizon: 1–2 weeks, depending on RSI behavior and volume strength.

This setup suits momentum-driven traders who are comfortable with high valuation plays and can manage short-term volatility. Let me know if you'd like help tracking this trade or scanning similar setups.

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