AJANTPHARM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | AJANTPHARM | Market Cap | 38,041 Cr. | Current Price | 3,045 ₹ | High / Low | 3,228 ₹ |
| Stock P/E | 40.3 | Book Value | 330 ₹ | Dividend Yield | 0.92 % | ROCE | 33.0 % |
| ROE | 25.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,891 ₹ | DMA 200 | 2,718 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.68 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 250 Cr. |
| RSI | 58.2 | MACD | 44.6 | Volume | 1,31,125 | Avg Vol 1Wk | 2,06,015 |
| Low price | 2,022 ₹ | High price | 3,228 ₹ | PEG Ratio | 5.08 | Debt to equity | 0.01 |
| 52w Index | 84.8 % | Qtr Profit Var | -2.94 % | EPS | 75.5 ₹ | Industry PE | 27.6 |
📊 Chart & Trend: Current price (3,045 ₹) is trading above both 50 DMA (2,891 ₹) and 200 DMA (2,718 ₹), reflecting a strong bullish undertone. Support lies near 2,890–2,920 ₹, resistance at 3,228 ₹ (recent high).
📉 Momentum Indicators: RSI at 58.2 indicates healthy momentum without being overbought. MACD at 44.6 confirms bullish strength. Bollinger Bands show price near the upper band, signaling strong upward momentum but caution for possible short-term pullback.
📈 Volume Trends: Current volume (1.31 lakh) is below the 1-week average (2.06 lakh), suggesting moderate participation. Sustained breakout requires stronger volume confirmation.
🎯 Entry Zone: 2,900–3,000 ₹ (near 50 DMA support, favorable risk-reward).
🎯 Exit Zone: 3,200–3,250 ₹ (near recent high; profit booking advisable).
🔎 Trend Status: The stock is trending upward with bullish bias. Strong technicals supported by moving averages and MACD, though volume needs to pick up for sustained breakout.
Positive
- High ROCE (33.0%) and ROE (25.7%) reflect excellent capital efficiency.
- Debt-to-equity ratio at 0.01 indicates near debt-free status.
- EPS at 75.5 ₹ highlights strong earnings base.
Limitation
- High P/E (40.3) compared to industry average (27.6) suggests overvaluation.
- PEG ratio at 5.08 indicates stretched valuation relative to growth.
- Quarterly profit variance (-2.94%) shows slight earnings decline.
Company Negative News
- Decline in FII holding (-0.56%) signals reduced foreign investor confidence.
- Quarterly PAT slipped slightly (245 Cr vs 250 Cr).
Company Positive News
- DII holding increased (+0.68%), reflecting domestic institutional support.
- Strong 52-week performance (84.8% index gain) highlights robust momentum.
Industry
- Industry PE at 27.6 suggests moderate sector valuation.
- Pharmaceutical sector benefits from global demand and healthcare expansion.
Conclusion
⚖️ AJANTPHARM is trending upward, supported by strong fundamentals and bullish technical signals. Entry near 2,900–3,000 ₹ offers favorable risk-reward, with exit targets around 3,200–3,250 ₹. While valuations are stretched, efficiency metrics and sector tailwinds support continued strength. Best suited for momentum trades with stop-loss near 2,890 ₹.
Would you like me to also prepare a sector basket overlay with peer benchmarking for pharma stocks, so you can compare AJANTPHARM’s bullish setup against its competitors for rotation opportunities?