SUNPHARMA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | SUNPHARMA | Market Cap | 4,08,679 Cr. | Current Price | 1,704 ₹ | High / Low | 1,851 ₹ |
| Stock P/E | 93.7 | Book Value | 99.2 ₹ | Dividend Yield | 0.94 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,697 ₹ | DMA 200 | 1,697 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.60 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 55.5 | MACD | -21.7 | Volume | 46,48,701 | Avg Vol 1Wk | 47,98,138 |
| Low price | 1,547 ₹ | High price | 1,851 ₹ | PEG Ratio | 1.28 | Debt to equity | 0.56 |
| 52w Index | 51.6 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 29.1 |
📊 SUNPHARMA shows moderate potential for swing trading. The stock is trading near its 50 DMA and 200 DMA (both at 1,697 ₹), suggesting a consolidation phase. RSI at 55.5 indicates neutral momentum, while MACD at -21.7 reflects bearish sentiment in the short term. The valuation is stretched with a P/E of 93.7 compared to the industry average of 29.1, though fundamentals remain strong with ROE at 17.8% and ROCE at 16.8%. Quarterly PAT has declined (-24.6%), raising caution for near-term performance.
✅ Optimal Entry Price: Around 1,650–1,670 ₹ (near support levels)
🚪 Exit Strategy: If already holding, consider booking profits near 1,780–1,820 ₹ resistance zone, or exit if price falls below 1,640 ₹ support.
Positive
- Strong ROE (17.8%) and ROCE (16.8%) indicate efficient capital use
- DII holdings increased (+0.60%), showing domestic institutional confidence
- EPS of 16.7 ₹ supports earnings strength
- PEG ratio of 1.28 suggests reasonable valuation relative to growth
Limitation
- High P/E ratio (93.7) compared to industry average (29.1)
- MACD negative (-21.7), showing bearish short-term momentum
- Dividend yield at 0.94% is modest
- Stock consolidating near DMA levels, limiting immediate upside
Company Negative News
- Quarterly PAT declined (872 Cr vs 564 Cr previously, but with -24.6% variation)
- FII holdings decreased (-0.43%), showing reduced foreign investor confidence
Company Positive News
- Strong fundamentals with healthy ROE and ROCE
- DII inflows indicate domestic investor trust
- Stable trading volumes near averages, showing liquidity support
Industry
- Pharmaceutical sector remains resilient with long-term growth prospects
- Industry PE at 29.1, highlighting SUNPHARMA’s premium valuation
- Sector outlook supported by global demand for healthcare and generics
Conclusion
⚖️ SUNPHARMA is a cautious candidate for swing trading. Entry near 1,650–1,670 ₹ offers a safer risk-reward setup, while profit booking should be considered around 1,780–1,820 ₹. High valuation and weak short-term momentum limit upside, but strong fundamentals and sector resilience provide medium-term stability.