ZYDUSLIFE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.2

📊 Analysis Summary

Zydus Lifesciences (ZYDUSLIFE) is a strong candidate for swing trading, supported by solid fundamentals, improving earnings, and a bullish technical setup. While the PEG ratio is high (indicating premium valuation relative to growth), the stock shows signs of upward momentum and institutional interest.

✅ Strengths

Fundamentals

ROCE: 24.3% & ROE: 21.2% — excellent operational efficiency.

EPS: ₹45.0 — robust earnings base.

Debt to Equity: 0.13 — low leverage.

Dividend Yield: 1.11% — decent yield.

Valuation

P/E: 21.6 vs Industry PE: 34.0 — attractively priced.

Book Value: ₹238 — strong asset backing.

Quarterly Performance

PAT Qtr ↑ ₹1,255 Cr. vs ₹1,024 Cr. — consistent growth.

Qtr Profit Var: +6.44% — stable earnings momentum.

Technical Indicators

RSI: 61.5 — bullish but not overbought.

MACD: +3.74 — positive crossover, upward momentum.

Price above DMA 50 & DMA 200 — confirms uptrend.

Volume Strength

Current volume > 1-week average — rising interest.

DII Holding ↑ 0.14%

Domestic institutions increasing stake.

⚠️ Weaknesses

FII Holding ↓ 0.18%

Slight foreign investor pullback.

PEG Ratio: 11.4

Indicates expensive valuation relative to growth — caution for long-term investors.

52W Index: 37.8%

Still far from 52-week high — room for recovery but not near breakout.

🎯 Optimal Entry Price

Entry Zone: ₹975–₹985

Slight pullback near DMA 50 offers good entry with limited downside.

Confirmation

Maintain RSI > 60 and MACD positive with volume support.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹1,080–₹1,100

Near resistance zone and psychological level — ideal swing target.

Stop Loss: ₹950

Below DMA 200 — protects against trend reversal.

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