BIOCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | BIOCON | Market Cap | 58,296 Cr. | Current Price | 360 ₹ | High / Low | 425 ₹ |
| Stock P/E | 299 | Book Value | 120 ₹ | Dividend Yield | 0.14 % | ROCE | 2.09 % |
| ROE | 0.40 % | Face Value | 5.00 ₹ | DMA 50 | 366 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 2.34 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 70.9 Cr. |
| RSI | 48.7 | MACD | -2.49 | Volume | 20,72,398 | Avg Vol 1Wk | 30,16,403 |
| Low price | 318 ₹ | High price | 425 ₹ | PEG Ratio | -16.1 | Debt to equity | 0.16 |
| 52w Index | 39.1 % | Qtr Profit Var | 3,183 % | EPS | 0.07 ₹ | Industry PE | 30.1 |
📈 Chart & Trend Analysis:
- Current price ₹360 is below both 50 DMA (₹366) and 200 DMA (₹369), reflecting technical weakness.
- RSI at 48.7 indicates neutral momentum, neither oversold nor overbought.
- MACD at -2.49 remains negative, signaling bearish bias.
- Bollinger Bands suggest consolidation between ₹350–370, with limited volatility expansion.
- Volume (20,72,398) is below 1-week average (30,16,403), showing weak participation.
🎯 Entry Zone: ₹340–350 (support near recent lows)
🎯 Exit Zone: ₹370–380 (resistance near moving averages)
📊 Status: Consolidating with bearish bias; reversal unlikely unless price sustains above 370–380.
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Positive
✔ Quarterly PAT growth (₹111 Cr vs ₹70.9 Cr) shows earnings improvement
✔ DII holdings increased (+2.34%), reflecting strong domestic institutional support
✔ FII holdings also increased (+0.13%), showing foreign investor confidence
✔ Debt-to-equity ratio of 0.16 indicates manageable leverage
Limitation
⚠ Extremely high P/E of 299 compared to industry average of 30.1
⚠ Negative PEG ratio (-16.1) highlights poor growth valuation balance
⚠ Weak ROCE (2.09%) and ROE (0.40%) show poor capital efficiency
⚠ Dividend yield of 0.14% is very low, limiting passive returns
Company Negative News
📉 Stock trading below both 50 DMA and 200 DMA, showing technical weakness
📉 Low profitability ratios despite profit growth
Company Positive News
📈 Quarterly profit surged by 3,183% YoY, showing operational recovery
📈 Institutional inflows from both FIIs and DIIs provide support
Industry
🏭 Biopharma sector remains strategically important with long-term demand in healthcare
🏭 Industry P/E at 30.1 indicates moderate valuation compared to Biocon’s extreme premium pricing
Conclusion
Biocon is showing signs of recovery in profits but remains overvalued and technically weak, making it a risky swing trade candidate. Entry near ₹340–350 offers a safer setup, with exit around ₹370–380. Traders should monitor MACD and efficiency ratios closely, while long-term investors may prefer to wait for stronger fundamentals before adding positions.
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