AJANTPHARM - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 4.1

📊 Chart Patterns: AJANTPHARM is trading above both its 50 DMA (2,560 ₹) and 200 DMA (2,588 ₹), showing strength. Current price (2,633 ₹) is comfortably above support levels, with resistance near 2,700–2,750 ₹ and major resistance at 3,116 ₹.

📈 Moving Averages: Price above both short- and long-term averages indicates bullish momentum. Sustaining above 2,588 ₹ confirms trend continuation.

📉 RSI: At 53.3, RSI is neutral, suggesting balanced momentum without overbought or oversold signals.

📈 MACD: Positive at 27.5, confirming bullish momentum and potential for upward continuation.

📊 Bollinger Bands: Price is near the mid-band, indicating stability with room for expansion toward upper band.

📊 Volume Trends: Current volume (44,920) is higher than average weekly volume (30,808), showing increased participation and supporting bullish sentiment.

📌 Momentum Signals: Short-term momentum is positive with potential upside toward 2,700–2,750 ₹. Strong support lies at 2,560–2,588 ₹.

🎯 Entry Zone: 2,560–2,600 ₹ (near support and moving averages).

🎯 Exit Zone: 2,700–2,750 ₹ (short-term resistance), with extended target at 3,116 ₹.

🔎 Trend Status: Currently trending upward with bullish bias. Consolidation may occur near resistance zones.

Positive

• Strong ROCE (33.0%) and ROE (25.7%) highlight efficient capital use.
• Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.
• EPS of 76.1 ₹ supports earnings strength.
• Dividend yield of 1.10% adds shareholder value.

Limitation

• High PEG ratio (4.36) suggests expensive valuation relative to growth.
• Stock P/E (34.6) is above industry PE (30.6), indicating premium pricing.
• FII holdings decreased (-0.33%), showing slight foreign investor caution.

Company Negative News

• Quarterly PAT declined slightly (255 Cr. to 250 Cr.).
• Premium valuation may limit upside in near term.

Company Positive News

• Quarterly profit growth (+6.19%) year-on-year shows resilience.
• Strong fundamentals with high ROCE and ROE.
• DII holdings increased (+0.40%), reflecting domestic institutional confidence.

Industry

• Industry PE at 30.6 is lower than AJANTPHARM’s P/E, showing premium valuation.
• Pharmaceutical sector outlook remains strong with consistent demand and innovation pipeline.

Conclusion

⚖️ AJANTPHARM is trending upward with bullish signals supported by strong fundamentals. Traders may consider entry near 2,560–2,600 ₹ with exit around 2,700–2,750 ₹. Long-term investors can hold for extended targets near 3,116 ₹, while monitoring valuation risks.