⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUNPHARMA - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for SUNPHARMA based on the provided parameters
Swing Trade Rating: 3.7
| Stock Code | SUNPHARMA | Market Cap | 4,37,939 Cr. | Current Price | 1,825 ₹ | High / Low | 1,917 ₹ |
| Stock P/E | 146 | Book Value | 93.2 ₹ | Dividend Yield | 0.88 % | ROCE | 14.8 % |
| ROE | 12.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,795 ₹ | DMA 200 | 1,745 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.28 % | PAT Qtr | 609 Cr. | PAT Prev Qtr | 872 Cr. |
| RSI | 55.7 | MACD | 0.56 | Volume | 30,38,183 | Avg Vol 1Wk | 19,66,578 |
| Low price | 1,547 ₹ | High price | 1,917 ₹ | PEG Ratio | -39.9 | Debt to equity | 0.61 |
| 52w Index | 75.0 % | Qtr Profit Var | -70.2 % | EPS | 10.9 ₹ | Industry PE | 32.1 |
📈 Optimal Entry Price: Around 1,780–1,800 ₹ (near 50 DMA support)
📉 Exit Strategy: If already holding, consider profit booking near 1,880–1,900 ₹ resistance zone. A stop-loss can be placed below 1,740 ₹.
Positive
- ✅ Strong ROCE (14.8%) and ROE (12.8%) highlight efficient capital use.
- ✅ Stock trading above 50 DMA (1,795 ₹) and 200 DMA (1,745 ₹), confirming bullish medium-term trend.
- ✅ DII holdings increased (+0.28%), showing domestic institutional confidence.
- ✅ Dividend yield of 0.88% adds investor appeal.
Limitation
- ⚠️ Extremely high P/E of 146 compared to industry PE of 32.1, suggesting overvaluation.
- ⚠️ PEG ratio of -39.9 indicates poor growth relative to valuation.
- ⚠️ Quarterly PAT dropped sharply from 872 Cr. to 609 Cr. (-70.2% variation).
- ⚠️ EPS of 10.9 ₹ is modest relative to current price.
Company Negative News
- 📉 Decline in quarterly profits raises concerns about earnings consistency.
- 📉 FII holdings decreased (-0.18%), showing reduced foreign investor confidence.
Company Positive News
- 📈 Strong fundamentals with ROE and ROCE above industry averages.
- 📈 Stock trading near 52-week high (1,917 ₹) reflects strong investor sentiment.
- 📈 Volume surge (30.3 lakh vs avg 19.6 lakh) indicates heightened market activity.
Industry
- 🏭 Industry PE is 32.1, SUNPHARMA trades at a significant premium (146).
- 🏭 Pharmaceutical sector remains resilient with steady demand and global opportunities.
- 🏭 Sector supported by healthcare expansion and export opportunities.
Conclusion
🔎 SUNPHARMA is a fair candidate for swing trading, supported by strong fundamentals and technical strength above key moving averages. However, high valuation and declining quarterly profits limit upside potential. Entry near 1,780–1,800 ₹ offers a reasonable risk-reward, while profit booking near 1,880–1,900 ₹ is advisable.
Would you like me to extend this into a risk-reward analysis or a peer comparison with Cipla, Dr. Reddy’s, and Lupin to refine the swing trade view?