AKUMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.7

📊 Chart Patterns: AKUMS is trading below both its 50 DMA (438 ₹) and 200 DMA (506 ₹), reflecting weakness. Current price (427 ₹) is close to support at 405 ₹, with resistance around 438–450 ₹ and stronger resistance near 506 ₹.

📈 Moving Averages: Price below key averages indicates bearish bias. Sustained move above 438–450 ₹ is needed for recovery.

📉 RSI: At 43.9, RSI is neutral-to-weak, suggesting limited momentum and potential sideways consolidation.

📉 MACD: Negative at -4.83, confirming bearish momentum and lack of strong upward signals.

📊 Bollinger Bands: Price is near the lower band, indicating mild oversold conditions and possible short-term bounce.

📊 Volume Trends: Current volume (1,27,726) is significantly higher than average weekly volume (69,054), showing increased activity near support zones.

📌 Momentum Signals: Short-term bounce possible from 405–427 ₹ support, but trend remains weak unless price sustains above 438–450 ₹.

🎯 Entry Zone: 405–427 ₹ (near support, oversold conditions).

🎯 Exit Zone: 438–450 ₹ (short-term resistance), extended resistance at 506 ₹.

🔎 Trend Status: Currently consolidating with bearish bias. Reversal requires breakout above 506 ₹.

Positive

• Debt-to-equity ratio of 0.02 indicates virtually debt-free balance sheet.
• PEG ratio of 1.43 suggests fair valuation relative to growth.
• DII holdings increased (+0.43%), showing domestic institutional support.

Limitation

• Stock P/E (49.1) is much higher than industry PE (30.6), indicating expensive valuation.
• Weak ROCE (16.2%) and ROE (13.2%) compared to peers.
• Price trading below both 50 DMA and 200 DMA.

Company Negative News

• Quarterly PAT dropped sharply from 44.9 Cr. to 23.5 Cr. (-53.4%).
• FII holdings reduced (-1.97%), reflecting weak foreign sentiment.

Company Positive News

• Debt-free structure provides financial stability.
• EPS of 8.71 ₹ supports earnings base despite recent profit decline.

Industry

• Industry PE at 30.6 is lower than AKUMS’s P/E, highlighting premium valuation.
• Pharmaceutical sector outlook remains strong with consistent demand drivers.

Conclusion

⚖️ AKUMS is consolidating near support with weak momentum. Traders may consider entry around 405–427 ₹ with exit near 438–450 ₹. Long-term investors should be cautious due to high valuation and declining profitability, waiting for sustained breakout above 506 ₹ before accumulation.