SUNPHARMA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | SUNPHARMA | Market Cap | 4,18,434 Cr. | Current Price | 1,744 ₹ | High / Low | 1,851 ₹ |
| Stock P/E | 95.9 | Book Value | 99.2 ₹ | Dividend Yield | 0.92 % | ROCE | 16.8 % |
| ROE | 17.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,743 ₹ | DMA 200 | 1,712 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.60 % | PAT Qtr | 872 Cr. | PAT Prev Qtr | 564 Cr. |
| RSI | 46.2 | MACD | 18.7 | Volume | 23,54,189 | Avg Vol 1Wk | 24,30,736 |
| Low price | 1,547 ₹ | High price | 1,851 ₹ | PEG Ratio | 1.31 | Debt to equity | 0.56 |
| 52w Index | 64.9 % | Qtr Profit Var | -24.6 % | EPS | 16.7 ₹ | Industry PE | 27.2 |
Analysis: Sun Pharma (SUNPHARMA) shows moderate potential for swing trading. The RSI at 46.2 is neutral, while the MACD (18.7) indicates bullish momentum. The current price (₹1,744) is aligned with the 50 DMA (₹1,743) and above the 200 DMA (₹1,712), suggesting stability and long-term support. However, the stock P/E (95.9) is significantly higher than the industry average (27.2), making it expensive. Quarterly profit fell sharply (₹872 Cr vs. ₹564 Cr, -24.6% variation), which raises concerns. Strong ROE (17.8%) and ROCE (16.8%) are positives, and debt-to-equity is moderate (0.56).
Optimal Entry Price: Around ₹1,710–1,730, closer to the 200 DMA support.
Exit Strategy (if already holding): Consider exiting near ₹1,820–1,850 if momentum strengthens, or cut losses if price falls below ₹1,700.
✅ Positive
- Strong ROE (17.8%) and ROCE (16.8%) indicate efficiency.
- MACD positive (18.7) shows bullish momentum.
- DII holdings increased (+0.60%), reflecting domestic investor confidence.
- Trading above 200 DMA (₹1,712) shows long-term support.
⚠️ Limitation
- Quarterly profit declined (-24.6%), raising earnings concerns.
- Stock P/E (95.9) is far above industry average (27.2).
- EPS of ₹16.7 is modest compared to valuation.
- Dividend yield of 0.92% is relatively low.
📰 Company Negative News
- Sharp decline in quarterly profits impacts sentiment.
- FII holdings decreased (-0.43%), showing reduced foreign investor confidence.
🌟 Company Positive News
- Strong operational efficiency reflected in ROE and ROCE.
- Positive MACD indicates bullish technical momentum.
- DII participation increased, signaling domestic support.
🏦 Industry
- Pharma sector PE (27.2) is much lower than Sun Pharma’s PE (95.9), making the stock relatively expensive.
- Industry supported by global demand for generics and specialty drugs, though pricing pressures remain.
📌 Conclusion
Sun Pharma is a moderately good candidate for swing trading with bullish technicals and strong fundamentals, but high valuation and declining profits limit upside. Entry near ₹1,710–1,730 offers better risk-reward. Exit near ₹1,820–1,850 if momentum continues, or below ₹1,700 to protect capital.