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PPLPHARMA - Swing Trade Analysis with AI Signals

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Rating: 3.3

Last Updated Time : 04 Feb 26, 02:09 am

Swing Trade Rating: 3.3

Stock Code PPLPHARMA Market Cap 21,401 Cr. Current Price 161 ₹ High / Low 241 ₹
Stock P/E 29.0 Book Value 58.2 ₹ Dividend Yield 0.09 % ROCE 12.4 %
ROE 9.74 % Face Value 10.0 ₹ DMA 50 170 ₹ DMA 200 189 ₹
Chg in FII Hold -0.61 % Chg in DII Hold 0.79 % PAT Qtr 151 Cr. PAT Prev Qtr 196 Cr.
RSI 47.0 MACD -5.26 Volume 40,94,856 Avg Vol 1Wk 57,50,649
Low price 148 ₹ High price 241 ₹ PEG Ratio 1.31 Debt to equity 0.12
52w Index 13.9 % Qtr Profit Var 27.4 % EPS 5.39 ₹ Industry PE 29.2

📊 PPLPHARMA shows moderate fundamentals with weak technicals, making it a cautious candidate for swing trading. The stock is currently at ₹161, trading below both its 50 DMA (₹170) and 200 DMA (₹189), reflecting bearish sentiment. RSI at 47.0 is neutral, while MACD at -5.26 indicates mild downward momentum. With fair valuation (P/E 29.0 vs industry 29.2) and modest ROCE/ROE, fundamentals provide some support. Optimal entry would be in the ₹155–₹160 range. If already holding, exit near ₹175–₹185, where resistance from the 50 DMA is expected.

✅ Positive

  • P/E of 29.0 is aligned with industry PE (29.2), suggesting fair valuation.
  • ROCE (12.4%) and ROE (9.74%) show moderate efficiency.
  • DII holdings increased (+0.79%), showing domestic institutional support.
  • Debt-to-equity ratio at 0.12 indicates low leverage risk.
  • PEG ratio of 1.31 suggests reasonable valuation relative to growth.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA shows technical weakness.
  • Dividend yield of 0.09% offers negligible income return.
  • EPS of ₹5.39 is modest compared to peers.
  • Volume below weekly average indicates reduced participation.

📉 Company Negative News

  • Quarterly PAT declined from ₹196 Cr. to ₹151 Cr.
  • FII holdings decreased (-0.61%), showing reduced foreign investor confidence.
  • 52-week index at 13.9% highlights underperformance relative to peers.

📈 Company Positive News

  • Quarterly profit variance (+27.4% YoY) shows improvement despite sequential decline.
  • DII inflows (+0.79%) reflect confidence from domestic institutions.
  • Debt-to-equity ratio remains low, ensuring financial stability.

🏭 Industry

  • Industry PE at 29.2 is in line with PPLPHARMA’s 29.0, suggesting fair valuation.
  • Pharmaceutical sector remains resilient, supported by healthcare demand and exports.

🔎 Conclusion

PPLPHARMA is a moderate swing candidate with fair valuation but weak technicals. Entry near ₹155–₹160 offers margin of safety. Exit around ₹175–₹185 is advisable if already holding, as resistance is expected near the 50 DMA. Risk management is essential due to declining quarterly profits and bearish momentum indicators.

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