ZYDUSLIFE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

📊 ZYDUSLIFE is a fundamentally strong swing trade candidate with technical support near 200-DMA and attractive valuation. Optimal entry is ₹960–₹975. If already held, consider exiting near ₹1,020–₹1,040.

📈 Positive

• ROCE (30.6%) and ROE (31.2%) indicate excellent capital efficiency and profitability.
• P/E (22.0) is significantly below industry average (33.1), suggesting undervaluation.
• PEG ratio (0.30) reflects attractive pricing relative to growth.
• EPS of ₹44.3 supports strong earnings performance.
• Debt-to-equity ratio (0.39) is healthy and manageable.

⚠️ Limitation

• MACD (-5.17) and RSI (39.8) suggest weak momentum and oversold conditions.
• Volume below 1-week average may indicate reduced short-term interest.
• Dividend yield (1.13%) is modest for income-focused investors.

🚫 Company Negative News

• Quarterly PAT dropped sharply from ₹2,814 Cr. to ₹385 Cr., a 77.4% decline.
• DII holdings declined by 0.23%, showing slight domestic institutional caution.

✅ Company Positive News

• FII holdings increased by 0.21%, indicating rising foreign investor confidence.
• Stock is trading near 200-DMA (₹973), offering technical support and potential rebound zone.

🌐 Industry

• ZYDUSLIFE operates in the pharmaceutical and healthcare sector, which benefits from consistent demand and innovation-driven growth.
• Industry P/E of 33.1 reflects moderate-to-high valuation expectations.

🧾 Conclusion

• ZYDUSLIFE is a strong swing trade candidate with solid fundamentals and technical support near key moving averages.
• Optimal entry: ₹960–₹975 (near 200-DMA and RSI zone).
• Exit target: ₹1,020–₹1,040 (near recent resistance and 50-DMA).
• Watch for MACD reversal and RSI crossing 45 to confirm momentum recovery.

I can help you compare ZYDUSLIFE’s setup with other pharma stocks to identify complementary swing trade opportunities.