ALKEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | ALKEM | Market Cap | 63,740 Cr. | Current Price | 5,332 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 28.8 | Book Value | 1,143 ₹ | Dividend Yield | 0.84 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,558 ₹ | DMA 200 | 5,462 ₹ |
| Chg in FII Hold | 0.50 % | Chg in DII Hold | -0.39 % | PAT Qtr | 654 Cr. | PAT Prev Qtr | 724 Cr. |
| RSI | 41.1 | MACD | -67.8 | Volume | 65,922 | Avg Vol 1Wk | 1,32,277 |
| Low price | 4,612 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.07 | Debt to equity | 0.06 |
| 52w Index | 54.5 % | Qtr Profit Var | -3.35 % | EPS | 196 ₹ | Industry PE | 27.6 |
📊 Chart & Trend: Current price (5,332 ₹) is trading below both 50 DMA (5,558 ₹) and 200 DMA (5,462 ₹), reflecting a mild bearish undertone. Support lies near 5,300 ₹, resistance at 5,558–5,600 ₹ and 5,934 ₹ (recent high).
📉 Momentum Indicators: RSI at 41.1 suggests neutral-to-weak momentum. MACD at -67.8 confirms bearish bias. Bollinger Bands show price leaning toward the lower band, signaling weakness but potential for a short-term rebound.
📈 Volume Trends: Current volume (65,922) is below the 1-week average (1,32,277), showing weak participation and lack of strong conviction.
🎯 Entry Zone: 5,250–5,350 ₹ (near support, tactical entry).
🎯 Exit Zone: 5,550–5,600 ₹ (near 50 DMA resistance; profit booking advisable).
🔎 Trend Status: The stock is consolidating with bearish bias. Oversold signals are not yet present, but weak momentum suggests caution until volume improves.
Positive
- High ROCE (19.5%) and ROE (19.9%) reflect strong capital efficiency.
- Debt-to-equity ratio at 0.06 indicates near debt-free status.
- EPS at 196 ₹ highlights robust earnings base.
Limitation
- P/E (28.8) is slightly above industry average (27.6), suggesting mild overvaluation.
- PEG ratio at 2.07 indicates stretched valuation relative to growth.
- Quarterly profit variance (-3.35%) shows earnings decline.
Company Negative News
- Quarterly PAT declined (654 Cr vs 724 Cr), reflecting short-term weakness.
- DII holding decreased (-0.39%), showing reduced domestic institutional confidence.
Company Positive News
- FII holding increased (+0.50%), showing foreign investor interest.
- Strong 52-week performance (54.5% index gain) highlights robust momentum.
- Dividend yield at 0.84% adds income appeal.
Industry
- Industry PE at 27.6 suggests moderate sector valuation.
- Pharmaceutical sector benefits from global demand, healthcare expansion, and regulatory support.
Conclusion
⚖️ ALKEM is consolidating with bearish bias, trading below key moving averages. Entry near 5,250–5,350 ₹ offers tactical opportunity, with exit targets around 5,550–5,600 ₹. Fundamentals remain strong with high efficiency and dividend support, but valuations are stretched and earnings decline is a concern. Best suited for cautious swing trades with strict stop-loss near 5,250 ₹.
Would you like me to extend this into a pharma sector basket overlay with peer benchmarking, so you can compare ALKEM’s setup against AJANTPHARM, AKUMS, and APLLTD for rotation opportunities?