SUNPHARMA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | SUNPHARMA | Market Cap | 4,37,543 Cr. | Current Price | 1,824 ₹ | High / Low | 1,849 ₹ |
| Stock P/E | 100 | Book Value | 99.2 ₹ | Dividend Yield | 0.88 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,728 ₹ | DMA 200 | 1,714 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.28 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 64.6 | MACD | 10.7 | Volume | 44,68,829 | Avg Vol 1Wk | 90,57,018 |
| Low price | 1,547 ₹ | High price | 1,849 ₹ | PEG Ratio | 1.37 | Debt to equity | 0.56 |
| 52w Index | 91.6 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 30.2 |
📊 SUNPHARMA shows moderate potential for swing trading. The RSI at 64.6 suggests the stock is approaching overbought levels, while MACD at 10.7 indicates bullish momentum. The ROE of 17.8% and ROCE of 16.8% reflect solid efficiency, but the extremely high P/E of 100 compared to the industry average of 30.2 signals significant overvaluation. The PEG ratio of 1.37 suggests growth is priced in. Quarterly PAT fell from ₹564 Cr. to ₹872 Cr., but the profit variation (-24.6%) raises concerns about earnings consistency. The stock is trading near its 52-week high (₹1,849), limiting upside potential in the short term.
💡 Optimal Entry Price: Around ₹1,730–1,760, closer to the 50 DMA (₹1,728).
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,830–1,850, just below the 52-week high.
Positive
- Strong ROE (17.8%) and ROCE (16.8%) indicate efficient capital use.
- Quarterly PAT improved compared to previous quarter.
- Stock trading above both 50 DMA and 200 DMA, showing bullish trend.
- DII holdings increased by 0.28%, reflecting domestic investor confidence.
Limitation
- Extremely high P/E (100) compared to industry average (30.2).
- Profit variation (-24.6%) raises concerns about earnings stability.
- RSI at 64.6 indicates near overbought conditions.
- Dividend yield at 0.88% is modest.
Company Negative News
- Profit variation shows inconsistency in earnings performance.
- FII holdings decreased by 0.18%, signaling reduced foreign investor interest.
Company Positive News
- Quarterly PAT growth from ₹564 Cr. to ₹872 Cr.
- Stock trading near 52-week high, reflecting strong momentum.
Industry
- Pharmaceutical sector remains resilient with steady demand.
- Industry PE at 30.2 is much lower than SUNPHARMA’s, suggesting relative overvaluation.
Conclusion
⚠️ SUNPHARMA earns a swing trade rating of 3.8. Entry near ₹1,730–1,760 offers a safer risk-reward setup, while profit booking should be considered around ₹1,830–1,850. Strong fundamentals and efficiency support upside, but high valuation and inconsistent profit trends limit near-term potential. Swing traders should proceed with caution.