SUNPHARMA - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:02 am
Back to Swing Trade ListSwing Trade Rating: 3.8
| Stock Code | SUNPHARMA | Market Cap | 4,18,684 Cr. | Current Price | 1,745 ₹ | High / Low | 1,910 ₹ |
| Stock P/E | 89.6 | Book Value | 99.2 ₹ | Dividend Yield | 0.92 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,746 ₹ | DMA 200 | 1,701 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | 0.74 % | PAT Qtr | 564 Cr. | PAT Prev Qtr | 927 Cr. |
| RSI | 42.8 | MACD | 10.5 | Volume | 37,28,300 | Avg Vol 1Wk | 22,09,775 |
| Low price | 1,547 ₹ | High price | 1,910 ₹ | PEG Ratio | 1.22 | Debt to equity | 0.56 |
| 52w Index | 54.5 % | Qtr Profit Var | -32.7 % | EPS | 18.7 ₹ | Industry PE | 30.6 |
📊 SUNPHARMA shows a mixed outlook for swing trading. The stock is trading at ₹1,745, very close to its 50 DMA (₹1,746) and above its 200 DMA (₹1,701), indicating medium-term support. Technical indicators like RSI (42.8) and MACD (10.5) suggest mild bullish momentum, supported by strong trading volumes. However, fundamentals show stretched valuations (P/E 89.6 vs industry 30.6) and a sharp quarterly profit decline (-32.7%).
✅ Optimal Entry Price: Around ₹1,700–1,720, near the 200 DMA support.
🚪 Exit Strategy: If already holding, consider exiting near ₹1,850–1,880 (resistance zone) or on weakness below ₹1,700.
Positive
- 💡 Strong ROE (17.8%) and ROCE (16.8%) show efficient capital utilization.
- 💡 PEG ratio of 1.22 indicates reasonable growth-adjusted valuation compared to peers.
- 💡 High trading volume (37.2 lakh vs avg 22.0 lakh) supports liquidity for swing trades.
Limitation
- ⚠️ High P/E (89.6) compared to industry average (30.6).
- ⚠️ Debt-to-equity ratio of 0.56 is higher than ideal for pharma peers.
- ⚠️ Quarterly profit decline (-32.7%) raises concerns about earnings stability.
Company Negative News
- 📉 PAT dropped from ₹927 Cr. to ₹564 Cr. in the last quarter.
- 📉 FII holdings decreased by 0.71%, showing reduced foreign investor confidence.
Company Positive News
- 📈 DII holdings increased by 0.74%, reflecting domestic institutional support.
- 📈 Strong 52-week performance with 54.5% index gain, showing sector leadership.
Industry
- 🏭 Industry P/E at 30.6 suggests peers are valued lower, highlighting SUNPHARMA’s premium positioning.
- 🏭 Pharma sector demand remains resilient, supporting long-term growth despite short-term volatility.
Conclusion
🔎 SUNPHARMA is a moderately suitable candidate for swing trading. Entry near ₹1,700–1,720 offers a safer risk-reward setup, while upside is capped around ₹1,850–1,880 due to stretched valuations and weak quarterly earnings. Best suited for traders seeking short-term momentum with cautious exit planning.
Would you like me to also highlight peer pharma stocks with stronger swing trade setups so you can compare SUNPHARMA’s relative opportunity?
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