SUNPHARMA - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📉 Current Price: ₹1,693

📊 Optimal Entry Price: ₹1,660–1,675 (near 50 & 200 DMA support)

📈 Suggested Exit (if holding): ₹1,880–1,910 (near 52-week high resistance)

🔷 Positive

• 📈 Strong ROE & ROCE: ROE at 17.8% and ROCE at 16.8% reflect efficient capital deployment
• 📊 MACD Positive: 17.6 indicates bullish momentum
• 📈 Above DMA Levels: Price trading above both 50 DMA (₹1,659) and 200 DMA (₹1,673)
• 📈 EPS Strength: ₹20.0 supports valuation and earnings visibility
• 📊 Volume Support: Current volume (16.18L) above 1-week average (15.05L)

⚠️ Limitation

• 📉 High P/E: 81.5 vs industry average of 33.1 suggests overvaluation
• 📉 PEG Ratio: 1.11 implies moderate valuation pressure
• 📉 RSI at 55.8: Neutral zone, limited upside without fresh trigger
• 📉 Quarterly PAT Drop: Profit fell from ₹2,000 Cr to ₹936 Cr QoQ

🚫 Company Negative News

• 📉 FII Selling: Foreign institutional holding declined by 0.71%

✅ Company Positive News

• 💊 Strong YoY PAT Growth: Despite QoQ drop, PAT up 294% YoY
• 🌍 Global Expansion: Continued growth in US generics and specialty pharma segments
• 📈 DII Buying: Domestic institutional holding increased by 0.74%

🏭 Industry

• 🧪 Pharma Sector: Supported by global demand, R&D innovation, and regulatory tailwinds
• 📉 Valuation Risk: Sector trading at elevated multiples amid margin pressures

🧾 Conclusion

SUNPHARMA presents a strong swing trade setup with solid fundamentals, bullish technicals, and sector support. While valuation is rich and recent profit dipped QoQ, the stock remains attractive for short-term momentum. Entry near ₹1,660–1,675 is ideal, with exit near ₹1,880–1,910. Monitor RSI and MACD strength before initiating new trades.

I can chart SUNPHARMA’s price action with support and resistance zones to help you time your trade more precisely.