⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ALKEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | ALKEM | Market Cap | 66,072 Cr. | Current Price | 5,526 ₹ | High / Low | 5,934 ₹ |
| Stock P/E | 29.5 | Book Value | 1,143 ₹ | Dividend Yield | 0.81 % | ROCE | 19.5 % |
| ROE | 19.9 % | Face Value | 2.00 ₹ | DMA 50 | 5,660 ₹ | DMA 200 | 5,432 ₹ |
| Chg in FII Hold | 0.50 % | Chg in DII Hold | -0.39 % | PAT Qtr | 724 Cr. | PAT Prev Qtr | 610 Cr. |
| RSI | 39.4 | MACD | 7.11 | Volume | 24,481 | Avg Vol 1Wk | 1,08,632 |
| Low price | 4,492 ₹ | High price | 5,934 ₹ | PEG Ratio | 2.12 | Debt to equity | 0.06 |
| 52w Index | 71.7 % | Qtr Profit Var | 12.8 % | EPS | 204 ₹ | Industry PE | 29.1 |
📈 Technical Analysis
- Chart Patterns: Price (5,526 ₹) is below 50 DMA (5,660 ₹) but above 200 DMA (5,432 ₹), showing mixed signals.
- Moving Averages: Short-term weakness but long-term support intact.
- RSI: At 39.4, approaching oversold territory, potential rebound signal.
- MACD: Positive (7.11), suggesting early bullish crossover despite weak RSI.
- Bollinger Bands: Price near lower band, support seen around 5,500 ₹.
- Volume Trends: Current volume (24,481) is significantly below 1-week average (1,08,632), showing weak participation.
🎯 Momentum & Trade Zones
- Support Levels: 5,432 ₹ (200 DMA), 5,500 ₹ (near Bollinger lower band), 4,492 ₹ (recent low).
- Resistance Levels: 5,660 ₹ (50 DMA), 5,800–5,900 ₹ (psychological barrier), 5,934 ₹ (recent high).
- Entry Zone: 5,450–5,550 ₹ (accumulation near support).
- Exit Zone: 5,800–5,900 ₹ (profit booking near resistance).
- Trend: Consolidating with mild bearish bias; reversal possible if price sustains above 5,660 ₹.
✅ Positive
- Strong ROCE (19.5%) and ROE (19.9%) reflect solid efficiency.
- Debt-to-equity ratio at 0.06, virtually debt-free.
- Dividend yield of 0.81% provides shareholder returns.
- FII holdings increased (+0.50%), showing foreign investor confidence.
- Quarterly PAT growth (724 Cr. vs 610 Cr.) highlights earnings momentum.
⚠️ Limitation
- Stock trading below 50 DMA, reflecting short-term weakness.
- High PEG ratio (2.12) indicates expensive growth prospects.
- Volume participation is weak, reducing conviction in price moves.
📉 Company Negative News
- DII holdings decreased (-0.39%), showing reduced domestic institutional confidence.
- Quarterly profit variance at 12.8% is positive but slower compared to peers.
📊 Company Positive News
- EPS at 204 ₹ supports strong valuation.
- Quarterly PAT growth highlights operational strength.
- FII inflows (+0.50%) reflect foreign investor optimism.
🏭 Industry
- Industry P/E at 29.1, in line with company’s 29.5, suggesting fair sector valuation.
- Pharma sector remains resilient with strong demand from exports and domestic consumption.
📝 Conclusion
- ALKEM is consolidating with mild bearish bias but supported by strong fundamentals.
- Optimal entry near 5,450–5,550 ₹ with exit around 5,800–5,900 ₹.
- Strong efficiency, low debt, and earnings growth make it attractive, but weak short-term technicals limit upside.
- Medium-term investors should watch for breakout above 5,660–5,934 ₹ to confirm reversal trend.