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AJANTPHARM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | AJANTPHARM | Market Cap | 34,732 Cr. | Current Price | 2,780 ₹ | High / Low | 3,080 ₹ |
| Stock P/E | 36.8 | Book Value | 330 ₹ | Dividend Yield | 1.02 % | ROCE | 33.0 % |
| ROE | 25.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,689 ₹ | DMA 200 | 2,629 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.68 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 250 Cr. |
| RSI | 60.8 | MACD | 12.2 | Volume | 51,935 | Avg Vol 1Wk | 85,295 |
| Low price | 2,022 ₹ | High price | 3,080 ₹ | PEG Ratio | 4.64 | Debt to equity | 0.01 |
| 52w Index | 71.6 % | Qtr Profit Var | -2.94 % | EPS | 75.5 ₹ | Industry PE | 29.1 |
📈 Technical Analysis
- Chart Patterns: Price (2,780 ₹) is above both 50 DMA (2,689 ₹) and 200 DMA (2,629 ₹), showing bullish strength.
- Moving Averages: Upward bias as stock trades above key averages.
- RSI: At 60.8, moderately strong momentum, not yet overbought.
- MACD: Positive (12.2), bullish crossover supports upward momentum.
- Bollinger Bands: Price near upper band, resistance seen around 2,800–2,850 ₹.
- Volume Trends: Current volume (51,935) is below 1-week average (85,295), showing moderate participation.
🎯 Momentum & Trade Zones
- Support Levels: 2,689 ₹ (50 DMA), 2,629 ₹ (200 DMA), 2,600 ₹ (psychological support).
- Resistance Levels: 2,800–2,850 ₹ (near Bollinger upper band), 3,080 ₹ (recent high).
- Entry Zone: 2,700–2,750 ₹ (accumulation near support).
- Exit Zone: 2,850–3,000 ₹ (profit booking near resistance).
- Trend: Trending upward with bullish bias; consolidation possible near resistance zones.
✅ Positive
- Strong ROCE (33.0%) and ROE (25.7%) reflect excellent efficiency.
- Debt-to-equity ratio at 0.01, virtually debt-free.
- Dividend yield of 1.02% provides shareholder returns.
- DII holdings increased (+0.68%), showing domestic institutional confidence.
- 52-week index return of 71.6% highlights strong long-term performance.
⚠️ Limitation
- High P/E (36.8) compared to industry average (29.1) suggests overvaluation.
- PEG ratio (4.64) indicates expensive growth prospects.
- Volume participation is lower than average, reducing conviction in price moves.
📉 Company Negative News
- FII holdings decreased (-0.56%), showing reduced foreign investor confidence.
- Quarterly PAT declined slightly (245 Cr. vs 250 Cr.), showing earnings pressure.
📊 Company Positive News
- EPS at 75.5 ₹ supports strong valuation.
- Operational efficiency reflected in high ROCE and ROE.
🏭 Industry
- Industry P/E at 29.1, lower than company’s 36.8, suggesting sector peers may be more attractively priced.
- Pharma sector growth remains strong, driven by exports and domestic demand.
📝 Conclusion
- AJANTPHARM is trending upward with bullish bias, supported by strong fundamentals.
- Optimal entry near 2,700–2,750 ₹ with exit around 2,850–3,000 ₹.
- Strong efficiency and low debt profile make it attractive, but high valuation limits upside.
- Medium-term investors can hold for breakout above 3,080 ₹ to confirm continuation of uptrend.